A South Wales steel business has been saved after it was bought out of administration in a deal that will secure all 20 jobs.
Cardiff Docks-based Bemaco Steel is a well-established manufacturer and distributor of steel products, which also specialises in laser cutting tubular products for the construction sector. It operates in the UK and Spain and has been trading profitably for many years. However, a ruling against the firm in a contractual case in March 2022 left the business unable to continue as a going concern.
Andrew Sheridan and Jonathan Dunn of specialist business advisory firm FRP were appointed as Joint Administrators for the business on 25 April, and on their appointment immediately secured a pre-pack sale of the company to FXSteel, a connected party, in a deal worth £4.6m.
Under the deal, the business will continue to be led by Bulent Unal, previously the sole Director of the Bemaco Steel, alongside fellow Directors, Murat Unal and Mark Halley.
Bulent Unal said: “This deal represents a fresh start for what was historically a profitable business with a strong client base.
“Under the FXSteel banner, we remain a major steel broking, distribution and specialist laser cutting of tubular steel products business based in Cardiff Docks and our combined years of experience within the steel industry mean we are a trusted partner for product sourcing, material financing and distribution.
“I’m pleased to have secured the future of the business for our colleagues and construction sector customers at such an important time.”
Bemaco Steel was founded in 1987 and achieved revenues of £40m in 2019, though turnover was subsequently impacted by the pandemic.
Andrew Sheridan, restructuring advisory partner at FRP, said: “This deal ensures that all 20 employees will transfer across to FXSteel and secures the future of the business.
“There was substantial interest in the business, which has maintained profitability despite the well-reported challenges being faced by the steel industry, both here in South Wales and around the world. We wish the team at FXSteel every success as they take the business forward.”
Simon Bamford at Gordon Brothers and Nigel Boobier at Osborne Clarke LLP provided valuation and legal advice, respectively.
