News: Rotherham-based Metalysis acquired

Metalysis ltd, an innovative Rotherham-based company that has secured millions from investors in recent years, has been acquired having called in administrators following financial difficulties.

The Manvers company holds the worldwide exploitation rights to the FCC Cambridge process which sees specialist powder metals created in a simple, cost effective process with significant environmental benefits. With a Materials Discovery Centre on the Advanced Manufacturing Park (AMP), also in Rotherham, the firm raised a further £12m last year ahead of the start of commercial production.

Power Resources Group, a metallic materials science company which operates in Rwanda and Macedonia, has announced that it has acquired Metalysis.

A registration of a charge relating to the acquisition and asset sale agreement has been lodged with Companies House.

Employing 60 people from its two sites, Metalysis appointed Eddie Williams and Chris Petts of Grant Thornton UK LLP as joint administrators at the start of June.

The pair stated that Metalysis had experienced financial difficulties predominantly due to an extended recent investment round and needed to secure immediate investment.

It has previously been reported that a number of redundancies were made by the administrators.

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In a post on social media, Ray Power, CEO of Power Resources Group, said that he was "delighted to expand the Power Resources Group family with the acquisition of a great company and great team at Metalysis."

Power Resources Group operates mines in Rwanda, one of the world's largest producers of tin, tantalum, and tungsten. It opened a tantalum processing plant in Macedonia in 2018.

Metalysis' process, developed through years of R&D, takes the tantalum oxide feedstock and transforms it directly into tantalum powder using electrolysis. The process uses less energy than traditional processes as it does not require the melting of metals, and the salt used in producing the metals can be recycled.

Tantalum powders are used in the production of electronic components.

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News: Metalysis in administration

Metalysis ltd, an innovative Rotherham-based company that has secured millions from investors in recent years, is looking for a buyer having called in administrators following financial difficulties.

The Manvers company holds the worldwide exploitation rights to the FCC Cambridge process which sees specialist powder metals created in a simple, cost effective process with significant environmental benefits. With a Materials Discovery Centre on the Advanced Manufacturing Park (AMP), also in Rotherham, the firm raised a further £12m last year ahead of the start of commercial production.

Commercial production began in September and marked the technology's ascension from a Cambridge University breakthrough, through more than a decade of development, to offering industrial scale production of demand driven, high value powder alloys for international aerospace, automotive, additive and advanced manufacturing applications.

It employs 60 people from its two sites.

Now Eddie Williams and Chris Petts of Grant Thornton UK LLP have been appointed joint administrators.

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The firm said that Metalysis has experienced financial difficulties predominantly due to an extended recent investment round. As a result of urgent liquidity issues the directors had no alternative other than to place the business into administration.

Eddie Williams, advisory partner at Grant Thornton UK LLP said: "Metalysis is a truly innovative UK business with a unique disruptive technology that urgently requires new ownership and further ongoing investment. Despite the directors' best efforts and significant global interest, the business could not continue to operate without the protection of administration.

"Our immediate priority and urgent focus is to work alongside a credible interested party to secure immediate investment as part of a sale process and we would encourage any parties with interest to contact the administrators. With that support, I would hope that the business can continue to operate and thrive."

Having successfully got up to industrial scale with its fourth generation plant (Gen4), work is underway on "Generation 5" - manufacturing options for thousands of tonnes per annum of high value metal alloy powders. It is designed to retrofit into an existing industrial site.

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News: Rotherham NHS subsidiary talks halted

Rotherham Hospital bosses have shelved plans to form an NHS subsidiary company.

Rothbiz reported in October on consultants, Grant Thornton, being awarded a contract for support in setting up a Wholly Owned Subsidiary Business of The Rotherham NHS Foundation Trust.

Under severe financial pressure, some NHS trusts in England are seeking to save money by creating wholly owned subsidiaries, also known as subcos, companies to deliver services, including facilities and estates. Unions have called the move, "backdoor privatisation" and warned that trusts use the subcos to employ staff without NHS terms and conditions.

NHS Improvement, the national regulator, ordered a temporary stop asking trusts to "pause any current plans to create new subsidiaries or change existing subsidiaries" adding that it will consult on a new regulatory approach in October and issue new guidance.

Having helped organise meetings between hospital staff, union representatives and the Trust's chief executive and chair to outline their concerns, local MP, John Healey says that the plans have now been shelved.

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John Healey, Wentworth and Dearne MP, said: "I welcome the decision by Rotherham NHS Foundation trust to call a halt to the proposals, it is sound sense for our hospital services and staff who work there.

"It's thanks to the hard work of NHS staff and unions who, together with MPs, have forced the hospital board to think again on the plans which had the potential to create a two-tier workforce.

"The fact that hospitals are even having to consider such complicated schemes to save money shows how stretched NHS finances have become."

Lynn Monk, branch secretary of UNISON Rotherham Health said: "The UNISON branch are very grateful for the support we received from John as well as the wider public of Rotherham in opposing the transfer of staff to the Wholly Owned Subsidiary.

"They realised that it would undermine the staff pay and pensions but importantly could have resulted in the wholesale transfer of many more staff out of the NHS, privatisation by the back door.

"UNISON members stood firm against it,‎ bolstered by the support from John and his colleagues."

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News: Pricecheck accelerating export growth

Having surpassed £70m in sales in its 40th anniversary year, award-winning firm, Pricecheck Toiletries, is targeting £200m turnover by 2025, with 50% of revenue coming from exports.

Pricecheck is a leading supplier of international branded consumer goods, working predominately in the health and beauty sector, dealing with discounted clearance stock.

The second generation family owned business was established in 1978 by the parents of Mark Lythe and Debbie Harrison, who now run the company as joint managing directors. Officially opened in 2016, the ambitious firm moved to new premises at Beighton Link Business Park in Rotherham where an annual turnover of £73m was reported for the 2017-18 financial year – representing an increase of £18.1m on the previous year.

In early 2017, the brother and sister team turned to Growth 365, the membership service offered by professional services giant, Grant Thornton for ambitious mid-sized business leaders, to help them achieve their goal of achieving a £200m turnover by 2025. With £32.4m of 2018's total sales coming from exports, up 45% from the previous year, the aim is to reach 50% by 2025.

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Growth 365 connects Mark and Debbie with Grant Thornton's international network of experienced business advisers, technical specialists and analysts. The service also links the pair to a community of like-minded business leaders – an invaluable forum for sharing experiences, sounding out ideas and making new connections.

Mark Lythe, joint managing director at Pricecheck, said: "Our relationship with Grant Thornton and Growth 365 is building our confidence as we move into international markets. We've got access to fantastic resources and networks which we're using to expand growth worldwide."

Over the past year, the Growth 365 business advisers have challenged Pricecheck to take a fresh look at the business' position in the market. As a result, Mark and Debbie have developed a new and stronger identity for the business to boost its image on the international stage.

Growth 365 has also provided expert country market analysis so the pair have the right insight to target potential suppliers and customers in new markets more efficiently. Insight is also being provided into the competitor landscape, to enable Pricecheck to pinpoint the best opportunities in new product categories more accurately.

Staff numbers have grown from 80 to 150 in just two years and the company also expanded its storage capacity to 170,000 sq ft.

Richelle Schuster, who manages the Growth 365 service at Grant Thornton, said: "Pricecheck's growth means the business is taking on an increasingly important profile within the local community. People are proud of what Pricecheck has achieved as an international exporter."

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News: Package deal for Cepac

Cepac, the UK's leading independent corrugated packaging supplier based in Rotherham, has completed the acquisition of Woodhill Printers.

The deal to buy the Alfreton-based company, which also trades as Amber Valley Packaging, is the latest corporate transaction as it continues to expand and builds on its market position by acquiring businesses that add to its unrivalled service offering.

Founded in 1999, Cepac has established one of the largest and most technologically advanced corrugated packaging plants in the world in Manvers. It is part of the of the Yemen-based HSA Group and works with leading brands such as Crabbie's, Tayto and The Carlsberg Group. By pioneering "performance packaging," the business has grown to become the UK's fourth biggest integrated corrugated packaging provider.

Legal advice for Cepac on the deal was provided by Matt Ainsworth and Michael Hall of Irwin Mitchell. Claire Davis of Grant Thornton in Sheffield provided corporate finance advice and was supported by Fletcher Adamaowicz from a tax perspective.

Matt Ainsworth, partner at Irwin Mitchell, said: "Cepac is a leading player in the corrugated packaging sector and this deal will no doubt strengthen its position in its chosen markets. The newly acquired business shares Cepac's customer orientated-approach as well as its vision to be a true innovator in a competitive market and I have no doubt that it will support further growth at Cepac.

"This is another important deal for Cepac and we are delighted to have advised the business on its latest transaction."

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Cepac has made a number of other deals in recent years including the acquisitions of DS Smith's corrugated packaging operations in Darlington and Rawcliffe Bridge and the acquisition of point of sale display manufacturer Screenprint Doncaster Limited.

Claire Davis, director at Grant Thornton, added: "Together with Irwin Mitchell, we have advised Cepac on four acquisitions in the last three years and it's great to see the company continuing to look to the future and seize opportunities to grow with the addition of these complementary businesses."

The company has established itself as an innovator, both in terms of print, performance technology and retail ready packaging. Its newest development is H-DNA - high-definition performance packaging - which involves 300 lines per inch printed packaging, twice as fine as the 150 lines per inch widely used, and brings "glossy magazine cover" clarity to litho printed corrugated packaging with little or no on-cost.

Now with over 500,000 sq ft at four sites in the UK, the benefits of the acquisitions were seen in Cepac's financial results for 2014. Sales increased significantly as opportunities were leveraged across the businesses resulting in increased profits. Turnover for 2014 was £86.5m, up from £77.3m in 2013. Profit before tax for the year was £6.2m, up from £5.5m in 2013.

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News: Cepac on acquisition trail

Cepac, a leading UK producer of corrugated and retail-ready packaging based in Rotherham, has confirmed that it has completed two acquisitions and reached an agreement on a third.

Founded in 1999, Cepac has established one of the largest and most technologically advanced corrugated packaging plants in the world in Manvers.

A deal has been finalised for DS Smith's Darlington operation, formerly known as SCA Branded Packaging. It had been pending approval from the European Commission, which was finalised on 19 December 2012.

DS Smith had to dispose of the business as a condition of the European Commission's approval of its £1.4bn acquisition of SCA Group's packaging business.

Cepac has also reached a further agreement with DS Smith to acquire its Specialty Packaging plant in Rawcliffe Bridge, East Yorkshire.

A third deal sees Cepac acquire point of sale display manufacturer, Screenprint Doncaster Limited.

The deals are expected to compliment the existing plant at Brookfields Park and see the company, which is part of the Yemen-based HSA Group, considerably expand its operations to meet increasing demand for high quality packaging across a range of sectors.

Rod Ainslie, managing director at Cepac, said: "Having built up Cepac over 13 years, we have established a strong position in the industry, serving a solid base of FMCG customers. As we welcome our new colleagues and customers, our priority for the immediate future is involvement, communication and clear direction.

"The addition of the former DS Smith operations in conjunction with Screenprint Doncaster will enable us to operate an independent multi-plant network within the UK, satisfying customer demand with a wide and complementary range of market-leading products and enabling us to expand our customer base."

The deal was supported by three Sheffield-based teams. Grant Thornton provided advisory services. Legal advisers were from Irwin Mitchell Solicitors and banking facilities were provided by Lloyds TSB.

Matt Ainsworth of Irwin Mitchell Solicitors said: "Cepac is already a very successful business and these acquisitions give it an even brighter future – this is truly a South Yorkshire deal and it's fantastic that a Sheffield based team of advisers and funders has been able to work together seamlessly to make this happen."

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News: MTL sees exports double to over £7m

Manufacturing specialist, MTL Group, has almost doubled its export sales to £7.3m since moving to a state-of-the-art manufacturing facility in Rotherham last year.

MTL Group is one of Europe's fastest growing project manufacturing specialists in the metal sector and is a global supplier of secondary steelwork.

It works with a global blue-chip customer base in the defence, construction equipment, rail and off-shore wind energy sectors.

Founded in 1995, MTL Group processes around 30,000 tonnes of material annually and provides a range of services from laser cutting and machining to press braking and surface treatment. They underwent a management buyout in 2006 and has doubled its turnover in the last five years to £50m.

The company moved into a £5m, 300,00sq ft state-of-the-art manufacturing facility in Brinsworth last year and has invested £1m in new machinery.

The investment has enabled MTL Group to become a specialist in volume manufacturing, enabling it to make a vigorous move into exports which have risen from less than 1% of the group's turnover to 22% with products now being shipped around the world to mainland Europe, the Middle East, Africa, North America and India. The company has also seized the opportunity to move into the flourishing offshore wind energy market.

David O’Hara, group finance director at MTL Group, said: "We have established a worldwide reputation as a specialist processor with the capability to cut, bend, machine and fabricate steel to customers’ specific requirements. This expertise is increasingly being sought by overseas customers with exports growing to almost a quarter of our turnover.

"Last year, we were awarded our largest ever export to supply 97 boat landing systems to a leading European foundations manufacturer, for a German offshore wind farm. Since then, our export success in the offshore wind market has continued as we have secured several multimillion pound export orders to supply boat landings for the Borkum West and Meerwind offshore wind farms in the North Sea."

MTL's Rotherham facility boasts the largest laser in the UK and a 640-tonne robotic press, which is the biggest of its kind anywhere in the world.

A new high definition bevel plasma cutter and a robotic tube cutter are also in place, both specially designed to support the growth in orders from the offshore renewable energy sector.


David continued: "Having made a significant investment in larger, more efficient manufacturing facilities and also in training our workforce to the highest level of competency, we have been able to meet this demand from overseas and also to explore new sectors such as offshore wind farms. As an expanding business in an expanding sector, we have a very positive outlook and plan to further develop our export business with significant work from Europe, the Middle East and South Africa.

"South Yorkshire has been a great base from which to build our global business, benefitting from a highly skilled workforce, a solid base of sub contractors and good support from Rotherham's inward development organisation."

Peter Edwards, director at Grant Thornton in Sheffield, the firm's auditors and advisers, added: "It's fantastic to see businesses like MTL Group keeping South Yorkshire's manufacturing expertise on the world map. It's a great example of a forward-looking British firm that has not only exploited opportunities in new markets by establishing a successful export business, but has also been swift-footed and targeted emerging sectors such as the fast-growing offshore renewables industry."

MTL Group website

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