Acquisition of Rotherham engineering firm saves 80 jobs

A seven-figure acquisition has saved 80 jobs at Rotherham-based engineering business Newburgh Precision.

Joanne Hammond and Claire Dowson, from the Sheffield office of Begbies Traynor, were called in as joint administrators for the firm earlier this week.

The pair quickly managed to secure a £1m pre-pack administration sale to Ledantech Limited, saving all jobs at Newburgh Precision.

Sheffield’s 7 Legal & Finance Ltd advised Ledantech and a team from law firm Irwin Mitchell – including restructuring and insolvency partner Tom Paton, employment partner Kirsty Ayre, and solicitors Hal Roberts and and Guy Whitehead – advised Begbies Traynor and supported the transaction.

Founded in 1939, Newburgh Precision manufactures precision machined and fabricated engineering components and assemblies from a 85,000 sq ft production facility in Rotherham.

Following the deal, Ledantech changed its name to Vector X-Cel Ltd.

The joint administrators said in a statement: “After 75 years in business, it’s fantastic news that this sale has enabled the firm to continue trading, saving all 80 jobs as well as securing its supply chain.

“We wish it well for the future.”