A significant capital restructuring has rescued building products group Heywood Williams from administration, safeguarding around 1,000 jobs.
Heywood Williams owns Carlisle Brass, Sterling Hardware, Mila (UK), Eurospec Architectural Hardware and Eurolite Decorative Brass, amongst others.
Heywood Williams’ UK banks will provide the new Group with £6 million of additional financing to support the growth of the business as markets start to recover. Lloyds Banking Group and National Australia Bank have also agreed to write off £21m (nearly 40 per cent) of the Group’s existing debt.
Three divisional managing directors, Jason Anderson, Rick Karcher and Martin Wardhaugh will join the Group Board as Executive Directors of the new Group. The banks are appointing Mike McTighe as their representative on the board. Bill Schmuhl will step down from the board after 13 years as a Group Board member, although Bill will continue to be the Non-Executive Chairman of LaSalle Bristol. Roger Boyes will continue as Chairman and Graham Menzies and Steve Rogers will continue as our Non-Executive Directors.
Administrators from Deloitte finalised the sale contract with the newly-incorporated company Arran Isle Ltd.The shares of Heywood Williams Group PLC will be delisted from the London Stock Exchange from today.
Company chief executive Robert Barr, said: “This restructuring solution secures over 1,000 jobs, protects the members of the UK pension fund, and allows Heywood Williams, our suppliers, and our customers to continue with business as normal.
“The new Group has a great future ahead and we look forward to guiding it into a period of growth as our markets start to recover. The banks’ support demonstrates their faith in the strength of the underlying business.”
The banks now have a major stake in the business, which will retain the same board and management teams.