More than 130 jobs have been safeguarded after administrators from EY tied up a rescue deal for three divisions of heavy machinery rental specialist Hewden, but a further 250 staff at the Greater Manchester, UK business have been made redundant.
Sam Woodward and Colin Dempster of EY’s restructuring team have been appointed joint administrators of Hewden Stuart, Hewden Properties, Interlift and the Rigging House. The group was previously reported to be on the verge of slipping into administration.
Upon appointment, a total of 251 employees were made redundant across the company’s depot and onsite locations and terminated.
Woodward said: “Management has been attempting to operationally reshape the business to focus on higher margin and quicker returning assets and services. However, this has proven challenging with the group’s capital structure and the recent trading environment.
“Management recently undertook a number of initiatives including approaching new funders and potential acquirers to recapitalise the business, but unfortunately these efforts proved unsuccessful.”
However, three divisions of the group have been sold to Ashtead Plant Hire Company. These are the Access and Power generation assets, the onsite plant business and the business and assets of Interlift Limited. A total of 133 employees will transfer across with the businesses.
Insider Media reports, listed equipment hire company Ashtead reported that its UK business A-Plant has acquired certain assets from EY for a cash consideration of £29m. These assets comprise the powered access and power generation fleet of Hewden, five onsite depots which service major petrochemical customers, the Interlift lifting and materials handling business, and the Hewden brand name.
It added that alongside the asset purchase, a number of Hewden’s employees would be joining the A-Plant business.
A-Plant chief executive Sat Dhaiwal said: “This acquisition significantly enhances A-Plant’s offering in the industrial sector where we have been keen to develop our capabilities for some time. We are pleased to be taking over a number of important onsite depots at major petrochemical facilities and will ensure that a high level of service is maintained for all customers through the integration process.
“I would also like to welcome those Hewden employees who will be joining A-Plant as part of this process.”
Squire Patton Boggs advised Ashtead Plant Hire. The team comprised John Alderton, Jenny Jones, Charlie Draper and Matthew Lewis.
EY’s Sam Woodward said: “We are assessing the optimum strategy for maximising value in the remainder of the group. In the meantime, we will continue to work with stakeholders to maintain service levels to customers who have assets on hire.
“It is with regret that 251 people have been made redundant. Our specialist team will work with those affected to help them claim outstanding wages and other payments due from the Redundancy Payments Office.”
The administrators are being advised by Addleshaw Goddard.
Richard Frost Senior Digital Staff Writer
