Turnaround investment specialist RCapital has acquired the embattled structural steel fabricator S Robinson & Sons (Engineers), which faced closure after crashing in the property market collapse.
The Derby-based company, which trades as Robinson, faced closure before the purchase and needed to secure additional working capital as its £7 million cash reserve was depleted, according to a statement from RCapital.
RCapital has bought 100 per cent of the business’s shares for an undisclosed sum. The statement says the firm aims to assist the management team by introducing new operators and industry experts to transform the business. Matt Swan, a former senior manager at construction group McAlpine, has been appointed as Robinson board chairman.
Jamie Constable, chief executive at RCapital, comments: ‘Steel fabrication is showing clear signs of recovery and the capital injection from RCapital will help sustain a rapid turnaround. Robinson was up for sale for more than a year and many in the industry feared it would be closed if a buyer could not be found.’
Founded in 1964 by the Robinson family, the business completes projects in the commercial, residential and educational sectors, and had previously generated revenues of more than £40 million. However, following the 2007 banking crisis, Robinson’s revenue fell sharply from £43 million in 2008 to £29 million in both 2009 and 2010, and, combined with high costs, placed the company under cash pressure.
RCapital’s existing turnaround investments include the Little Chef restaurant chain and nightclub operator Helena Leisure.