Leng Doesn't Linger - Whiff Still Pervades
The man who led two window companies to administration has not hung around - but the stink of the most recent pre-pack still sticks as David Leng quits...
Read Full ArticleThe majority of the Customade Group has been bought out of administration (30 June) having barely been in administration - but two Polyframe companies go to the wall.
A brand new group will be formed by European Private Equity fund Nimbus, together with its financing source MidCap Financial.
The new group is made up of Virtuoso Doors, Polyframe Norwich, Polyframe Stonehouse, REAL Aluminium, Atlas, Fineline Aluminium and Stevenswood.
The acquisition saves over 870 jobs.
The Customade Group had long been rumoured to be up for sale as the conglomerate had slid into financial difficulties. It had been expected that a buyer would have successfully entered the fray - but the coronavirus crisis threw those hopes out the window.
The Cutomade group companies were amongst the first to resume business operations but it was too little too late to save the firm from entering a brief period of administration before the buyers pounced.
Phoenix
Nimbus now expects the Customade Grup to rise like a phoenix from the flames with 'a strong footing for the acquired businesses to face the post Covid -19 economic pressures and pursue the new owner’s ambitious growth plans'.
“The Customade Group has a leading product and customer service proposition but has faced unprecedented challenges in the last six months. Our investment will allow the group to recover and focus on a long-term growth strategy which will include significant investment in manufacturing capability.”
– Alexander de Haas
Nimbus
Track record
The majority owners of the new group, are very experienced investors in manufacturing with a track record in supporting management teams to build strong, businesses. This transaction represents their second deal in the UK within the last 12 months.
Leng in there - Poly a dead parrot
The new group management team will be led by Chief Executive David Leng who added: “After an extensive process, it has been good to find an experienced investment partner in Nimbus to save the majority of the Customade business in these exceptionally difficult economic circumstances.
“I am very disappointed for the great staff, suppliers and customers at the Polyframe Halifax and Polyframe Livingston factories. These sites were uneconomic to re-open and we were unable to raise funding to restart them. I would like to sincerely thank everyone for their hard work and understanding.
“For the new restructured group we can now look forward to a much stronger and certain future.“
Picture: David Leng.
Article written by Cathryn Ellis
30th June 2020