SOME 63 jobs at the Rugby branch of a steelwork manufacturer have been saved following a takeover.
Aartee Bright Bar (ABB), which owns a distribution hub in Paynes Lane, has been sold to Barrett Steel Limited for £13million.
ABB, Britain’s largest distributor of engineering steel products, went into administration in February following a creditor dispute.
The acquisition covers ABB’s distribution business, which includes the Rugby hub as well as sites in Bolton, Newport, Southampton and Willenhall – saving a total of 173 jobs.
But its Hot Rolled business in Dudley is not included in the transaction and will be wound up, leading to 45 redundancies and the closure of the site.
Marcus Tyldsley, Chief Financial Officer at Barrett Steel Limited, said: “As new owners, we’ll prioritise the safety and wellbeing of our employees, and work collaboratively with our new team to bring fresh ideas and perspectives to the table.
“We’re excited to welcome our new colleagues to the Barrett Steel family and look forward to a successful future together.”
Michael Magnay, Managing Director at administrators Alvarez & Marsal, said: “This substantial investment from Barrett Steel is a vote of confidence in the business and the wider UK steel industry.
“The Companies’ creditors will now receive a substantial dividend and will have the opportunity to trade with the new business going forward.
“We are grateful to the employees and creditors for their support and understanding during this process, and to Barrett Steel for its commitment to the deal.”
ABB supplies engineering grade steel bars to manufacturers in the UK and internationally.
Barrett Steel, headquartered in Bradford, is the UK’s largest independent steel stockholder, comprising 44 companies across general steels, engineering steels, tubes and international services.
