Steel firm is acquired in £4.6m deal
BEMACO Steel has been bought out of administration in a deal safeguarding its 20-strong workforce.
The company operating at the Port of Cardiff has been acquired by FXSteel in a £4.6m deal facilitated by specialist business advisory firm, FRP Advisory.
Andrew Sheridan and Jonathan Dunn were appointed joint administrators for Bemaco on April 25 and immediately secured a pre-pack sale of the company to connected party FXSteel.
Under the deal, Bemaco Steel will continue to be led by Bulent Unal, the former sole director of the company, along with Murat Unal and Mark Halley.
The 35 year-old business is a wellestablished manufacturer and distributor of steel products and also specialises in laser cutting tubular products for the construction sector and operates in Spain as well as Wales. It had been trading profitably for many years and achieved revenues of £40m in 2019 before its turnover was impacted by the pandemic.
But a ruling against the firm in a contractual case last month left the business unable to continue as a going concern.
Mr Unal said the deal represented a fresh start for what was historically a profitable business with a strong client base.
“Under the FXSteel banner, we remain a major steel broking, distribution and specialist laser cutting of tubular steel products business, and our combined years of experience within the steel industry mean we are a trusted partner for product sourcing, material financing and distribution,” he said.
He added: “I’m pleased to have secured the future of the business for our colleagues and construction sector customers at such an important time.”
Mr Sheridan said: “This deal ensures that all 20 employees will transfer across to FXSteel and secures the future of the business.”
He added: “There was substantial interest in the business, which has maintained profitability despite the well-reported challenges being faced by the steel industry, both here in South Wales and around the world. We wish the team at FXSteel every success as they take the business forward.”
Simon Bamford at Gordon Brothers and Nigel Boobier at Osborne Clarke LLP provided valuation and legal advice, respectively.