Over the weekend I was informed of some good news, that Avocet have been bought and avoid going out of business altogether.
The company which has bought the business appears to be Atlantic Group, which owns the hardware company Eliza Tinsley. There were earlier whispers that large systems companies, like Synseal would be interested in buying the company, but these turned out to be false, and probably for the best. I believe that a company of a similar type, like Eliza Tinsley, was better for Avocet as they’re in the same industry.
Avocet are due to having a meeting around lunch time with their new owners, so Avocet will find out Atlantic Group’s intentions for the company then I’m sure. I’m led to believe that all debts are paid, important for the survival of the business, and that all orders and stock are now being returned to normal levels and processes. I am also led to believe that this deal nearly didn’t happen, and the the company was extremely close to going under. Just as a point of interest, Duff & Phelps, Avocet’s administrators, are also in charge of Rangers FC. Let’s hope they manage to make a good go of keeping them in business!
As with any takeover, jobs and jobs losses are always a worry. Obviously it is very good news that the company has been saved, and is rarity when you consider how many companies in our industry have gone to the wall over the past few years. But staff are obviously going to be worried about whether or not they will be keeping their jobs. Perhaps more will be known after this afternoon’s meeting.
15:40pm update: there are no planned redundancies for staff at Avocet.
17:23pm update: Official statement on purchase of Avocet:
The Atlantic Group announced the acquisition of Avocet Hardware Limited on Friday 24th February 2012. The Atlantic Group (which includes Eliza Tinsley) is a market leading hardware business which manufactures and distributes hardware products – including chain & rope, fixings, fasteners and general hardware into the major UK DIY retailers and independent trade markets. The acquisition of Avocet Hardware Limited will further strengthen the Group’s presence within these markets.
The Atlantic Group provides a strong platform to develop the current Avocet business which operates through three trading divisions – the Builders Hardware division, the Door & Window Hardware division and the ABS Secure division.
VK Jain, the Chairman of the Atlantic Group commented: “We are absolutely delighted that we have been able to complete the acquisition of the Avocet business which represents an exciting addition to the Atlantic Group.”
Ian Jones, Chief Executive of Avocet Hardware said: “The acquisition by the Atlantic Group is positive news and will ensure that the Avocet business can move forward with confidence. I have been hugely impressed with the loyalty shown across the customer base and the dedication of the team here in Brighouse during these recent challenging times.”