Pre pack deal saves 26 jobs at Heywood manufacturer
Gilwood, Heywood-based metals fabrication and manufacturing business has been sold in a pre-pack administration sale.
The company is a family-run metal fabrication business specialising in making pressure vessels and static process plant equipment. The company manufactures products for a number of industries including oil and gas, petrochemicals, nuclear and food and drink.
The rescue deal was completed by Gareth Harris and Chris Ratten of RSM UK Restructuring Advisory who were appointed Joint Administrators earlier this week after global and economic uncertainty impacted new orders due to rising interest rates and material costs.
The company was sold to DC Norris and Company, a manufacturer of industrial food and beverage processing equipment who employ over 200 people and also own BCH (Rochdale) a manufacturer of food processing equipment they acquired in 2017.
Gilwood employs 26 members of staff and all their jobs have been saved as part of the sale.
Established in 1964 by Luke Gilmartin, Gilwood started out by producing high quality textile machinery for the local textile industry. On the decline of the industry, the business expanded into the stainless steel fabrication sector making pressure vessel and process plant equipment.
The business had been run by members of the Gilmartin family, with Matthew Gilmartin and Andrew Gilmartin being the current directors.
Chris Ratten, RSM UK restructuring partner and Joint Administrator, said: “Gilwood is an established fabrication company in the North-West, and it is unfortunate that it has suffered over the last few months as a result of a delay and postponement of orders. Much of this is down to the economic uncertainty faced in the global markets by its customers and the decline in capital investment in projects due to rising interest rates and costs of materials. Given the ongoing economic challenges, we are pleased to have helped save the future of the Company and support the regeneration of its existing pipeline. Securing its sale to DC Norris will protect all its skilled workforce for many years to come and allow Gilwood to continue operating in the market.”
David Norris, owner and founder of DC Norris and Company, said: “We were very sorry to see the demise of the well-respected family business. Working with RSM, DC Norris has acquired the business as well as the assets from the administrator, and will also offer all the employees new jobs in a newly formed addition to the DC Norris group called Gilwood Ltd. The company will have our full commitment and support to maintain their high standards of quality and service going forward, including investing in new equipment to improve efficiencies over the next few years.”