Black Country law firm George Green has arranged a deal to buy a forging business that had gone into administration for an engineering firm.
George Green helped West Bromwich-based Brockhouse Group buy Heartlands Extrusion Forge from administrators BDO Stoy Hayward for an undisclosed amount.
Brockhouse, which was founded in 1885, is the UK’s largest manufacturer of upset forged parts, supplying components to a number of industry sectors including mining, railways, defence, automotive, materials handling and general engineering.
The acquisition of the Heartlands business, advised by George Green, adds warm forging to Brockhouse’s capabilities for the first time and strengthens its position in the automotive market. Heartlands’ main customers are tier-one suppliers to automotive manufacturers.
Brockhouse sales director Steve Chilvers said: “Having warm forging facilities will allow us to move into new product and market sectors and will make Brockhouse more versatile and flexible in responding to its customers.
“The technology which we have acquired produces less waste and uses less energy, both important considerations in moving the company forward.”
Brockhouse plans to re-locate the Heartlands workforce and machinery from Nechells to its West Bromwich headquarters in Howard Street in the next few months. The enlarged Brockhouse group will employ 115 people, with an annual turnover of £13 million.
It plans to use the increased productivity to break into new markets in Western Europe and the USA to take advantage of export-friendly exchange rates.
Brockhouse is a long-established client of Cradley Heath-based George Green, which has advised the company and its shareholders on a range of transactions. Corporate partner Matt Hyland advised on the acquisition of Heartlands.
He said: “Brockhouse was quick off the mark to register its interest with the administrator and to engage us.
“The downturn will continue to provide new opportunities for well-managed businesses such as Brockhouse, especially those which are well-prepared with management solutions and legal advice already in place.”
Meanwhile George Green has strengthened its employment department with the appointment of a new associate, who joins the firm from a senior position in a national engineering employers organisation.
Julia Fitzsimmons moves to the Cradley Heath office of George Green from the Engineering Employers Federation, where she advised manufacturing and engineering companies on a range of employment law issues. She also acted as their public voice by lobbying and meeting politicians to discuss the views of the industry.