Grant Thornton sells Cylinder Service Centre out of administration
The acquisition of North East automotive maintenance firm The Cylinder Service Centre has preserved 30 jobs in the region. The sale out of administration was overseen by professionals from Grant Thornton.
2020 has been a tough year for businesses across the industrial gamut, however, not least in the UK’s automotive sector. With companies still recovering from an extended period where the coronavirus saw activity grind to a halt, car-makers have seen cash reserves severely deplete amid the pandemic, while firms that focus on vehicle maintenance have also seen results tumble since the national lockdown.
Founded in 1998, The Cylinder Service Centre (CSC) provides a specialised hydraulic cylinder design and manufacturing service to clients around the world. The Tyne and Wear based company offers hydraulic cylinder repairs, new hydraulic rams and related hydraulic cylinder supply services to our extensive customer base, however 2020 has been a challenging year, amid the coronavirus lockdown.
Following a sustained period of financial distress, CSC appointed Chris Petts and Stuart Preston of Grant Thornton as joint administrators on 25 September. Fortunately, the pair were able to complete a rapid sale of the business as a going concern to Yorkshire-based Hystat Systems. The move has safeguarded all 30 of CSC’s staff, along with the customer contracts and projects it retains, which will continue to be serviced as normal. The administrators were advised on the transaction by Kelly Jordan of Muckle in Newcastle.
Petts commented, "We are very pleased to have completed a going concern sale of the business, which secures the continued employment of a skilled workforce in these challenging economic times, particularly for the oil and gas sector. Hystat Systems appears well placed to offer a platform from which the business can continue its development."
Hytat Systems is a design, manufacture and repair specialist of heavy duty hydraulic and pneumatic cylinders, accumulators and rotary actuators. Hystat Systems was advised on the transaction by Eaton Smith in Huddersfield.
Ray Wadsworth, Chairman of Hystat Systems, added, "Hystat Systems is pleased to become involved with The Cylinder Service Centre. We are confident that our experience in the cylinder market combined with the skilled workforce and superb facility in Washington will enable us to further develop the company on the existing site."
