Gordons has advised Enact, a £30 million small- and medium-sized entity (SME) fund, on the acquisition of Doncaster-based manufacturer Bawtry Carbon International out of administration.
Enact was advised on the deal by corporate partner James Fawcett and solicitors Andrew Moore and Matt Watson; commercial property partner Michael Finnett and apprentice legal executive Ciaran Mallon; and employment solicitor Bryony Goldspink.
More than 80 jobs have been saved at Bawtry Carbon, which is based on a 56-acre site in Austerfield, Doncaster. The business manufactures consumable carbon-based products for use in aluminium smelting.
Bawtry Carbon is the third investment completed by Enact Fund II and comes four months after closing the second fund at £30 million. Chris Cormack, the partner who leads the Enact fund, has joined Bawtry Carbon board and will support the existing management team.
Cormack said: “We are delighted to have completed the transaction resolving an uncertain time for employees and other stakeholders.”
“Bawtry Carbon has a unique position in a growing market and we are excited about supporting the management team who have shown remarkable resilience over the last five years, firstly to rebuild the factory following a fire in 2013 and latterly stabilising the business despite parent group pressures creating cash constraints that were no fault of the company, which was trading profitably, that ultimately led to the administration.”
Carl Hammerton, managing director of Bawtry Carbon, commented: “The business is built on strong partnerships in the supply of high quality carbon products to our customers within the primary aluminium industry. Priding ourselves not only in the high quality products we provide but equally in the proactive approach we offer to our customers.”
“Due to our strong market presence and reputation there was significant interest from several parties, with one company standing out in their determination to join us on our journey. We are therefore pleased that in Enact we have a partner that we believe will add true value to us as a business and that of all our stakeholders”
Russ Cahill of the Tax Advisory Partnership also advised Enact on the deal.
