100 jobs saved as Swedish firm buys glass manufacturer
MORE than 100 jobs have been saved at a County Durham glass producer after it was snapped up from administrators by new Swedish owners.
The majority of the business and assets of Romag and Romag PPM, based in Consett, have been acquired by Swedish-based manufacturer Dellner Bubenzer Group in a deal secured by advisors at RSM.
Romag designs and manufactures glass for train builders globally for all rail vehicles, including the likes of Hitachi Rail for the Government’s Intercity Express Programme.
It also makes bulletproof and fireresistant glass, as well as toughened glass anti-reflective glass, some of which has been installed at London Zoo and at top jewellers.
Keith Marshall and Gareth Harris of RSM Restructuring Advisory LLP were appointed as joint administrators of Romag and Romag PPM on Monday, August 10, following an extensive accelerated sale process, which resulted in the pre-pack deal to Dellner Romag Limited, for an undisclosed amount.
Seven years ago Romag was enjoying a boom time after a year long bid to win work with Hitachi Rail Europe paid off and it beat off global tenders to sign a preferred contractor agreement to supply specialist glass windows for Hitachi Rail Europe’s Class 800/801 high-speed trains.
However Romag and Romag PPM had suffered significant financial losses in recent years and were unable to continue trading without further investment, prompting the firm to call in advisors at RSM in Newcastle.
RSM worked with Matthew Brown and Matt Leech of Gateley Legal to secure the deal for the workforce, Dellner Bubenzer Group and the train manufacturing industry.
Keith Marshall of RSM restructuring advisory, said: “Following a competitive sales process, we’re pleased to have secured the ongoing and future operations of the businesses. It is equally pleasing to have secured the jobs of over 100 staff.
“This is a particularly positive outcome for the employees considering the challenging and uncertain market conditions brought on by Covid-19.”
Marcus Aberg, CEO of the Dellner Bubenzer Group, said: “This acquisition is part of the group’s continued strategic growth.
“It will allow us to expand our product offering, particularly in the global rail sector, where we’ll be able to provide complementary glass, vibration control and polymer solutions as an integrated package.’
The firm has now created new UK company, Dellner Romag Ltd, that will focus on the manufacture and supply of specialist glass and glazing products for the global rail, transport, security and architectural markets.
The new company will continue operating from the 125,000 sq ft manufacturing facility in Consett, and a sales office in Berlin.