Steel jobs saved as FRP finds buyer for Cardiff firm
The work of administrators from FRP Advisory has helped preserve the employment of 20 people across Wales. Bemaco Steel fell into administration in April 2022, but the consultants found a buyer immediately, in FXSteel.
Bemaco Steel was founded in 1987. Operating from the Cardiff Docks, the well-established manufacturer and distributor of steel products operates in the UK and Spain, and has been trading profitably for many years. Also specialising in laser cutting tubular products for the construction sector, it achieved revenues of £40 million in 2019.
However, as has been the case with many manufacturing and construction firms, the past two years have been a struggle for the company. Becamo’s turnover was subsequently impacted by the pandemic, and a ruling against the firm in a contractual case in March 2022 further wounded the business – leaving it unable to continue as a going concern.
When the firm fell into administration the following month, the news jeopardised 20 jobs in Wales. Fortunately, joint administrators Andrew Sheridan and Jonathan Dunn – of consultancy FRP Advisory – were able to immediately secure a pre-pack sale of the company to FXSteel. The deal, for which Simon Bamford at Gordon Brothers and Nigel Boobier of Osborne Clarke also provided valuation and legal advice, is reportedly worth £4.6 million, and will preserve all the firm’s occupations.
Andrew Sheridan, a Partner with FRP, said, “This deal ensures that all 20 employees will transfer across to FXSteel and secures the future of the business… We wish the team at FXSteel every success as they take the business forward.”
According to Sheridan, there was substantial interest in the business, in spite of the challenges facing the steel industry, due to its historic profitability. Under the deal, the business will continue to be led by Bulent Unal, previously the sole Director of the Bemaco Steel, alongside fellow Directors, Murat Unal and Mark Halley.
Bulent Unal commented, “This deal represents 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 based in Cardiff Docks and our combined years of experience within the steel industry mean we are a trusted partner for product sourcing, material financing and distribution. I’m pleased to have secured the future of the business for our colleagues and construction sector customers at such an important time.”
FRP has more than 520 people in the UK, including 79 partners, operating from 24 offices across England and Scotland. This makes FRP one of the UK’s largest independent business advisory firms specialising in corporate restructuring, corporate finance, forensic services pensions advisory and debt advisory.
