Rcapital, the UK based turnaround and growth investor, has today announced its backing of an MBO led rescue of the Caparo Wire business from Administrators at PWC.
The business has been renamed Wrexham Wire following successful completion of the deal.
Wrexham Wire is the UK’s premium manufacturer of specialist wire, supplying both UK and international markets from its manufacturing facility in North Wales. It has been in administration since 19th October following the insolvency of a number of companies in the Caparo Industries plc group. Rcapital has provided significant investment to back the incumbent management team in a deal which sees 80 jobs safeguarded.
Bernard Darlington, CEO of Wrexham Wire, said
“Immediately following the appointment of Administrators we began to seek backing to rescue the business and we progressed with Rcapital having been impressed with their willingness to execute a complex deal quickly. We are delighted at having secured a future for an established local manufacturing business, which could not have been achieved without support from all stakeholders during a period of uncertainty.”
The Rcapital team was led by Investment Director Chris Campbell, with COO Phil Emmerson joining the Wrexham Wire Board following the investment. Rcapital was introduced to the deal by Camalex corporate finance and advised by Shoosmiths and Preston Advisory.
“Despite having been in Administration, the business itself is not distressed and was a victim of wider problems in the Caparo group as a result of the issues in the steel sector. We are backing a management team that has been pivotal in stabilising the business in recent weeks and are confident that with ongoing stakeholder support we will create a profitable and sustainable business for the future.”
Jamie Constable, CEO, Rcapital