News

Direct mail specialist SR Communications has been bought out of administration by MBA Holdings, creating one of the largest companies in the print and direct mail sector with an estimated £40m annual turnover.

Its rapid purchase from administration, which was declared on 11 January, was completed last weekend and was part of “an accelerated [mergers and acquisitions] process”.

There are currently no redundancies planned and it is understood that staff from SR Communication’s Deptford headquarters will move to MBA’s 13,000m² Tottenham factory this week.

SR Communications suffered cashflow problems related to its level of gearing last autumn as the credit crunch impacted on the UK’s SME business sector.

Following this process, the directors entered into negotiations with MBA as its offer for the business and assets provided “the best outcome for creditors and, employees”.

Creditors and suppliers are being reassured by MBA that relationships will stay “strong”.

Bachar Aintaoui, chairman of the MBA Group, said: “Acquiring SR gives us greater economies of scale and more production capacity, which will benefit our customers.”

Administrator Andrew Stoneman of Menzies Corporate Restructuring said: “This is excellent news, and we are pleased to have assisted in providing the right outcome for SR’s staff and clients. We are particularly pleased that over 100 jobs have been saved.

“It’s gratifying, within the printing industry particularly, to see the business being purchased by a strong player within the sector who has recognised the value and reputation that SR established for itself.”

Graham Smith, marketing manager for MBA Holdings, said that the business is not currently in any other negotiations to buy print firms, but “always keeps an eye on the print market”.

MBA was established in 1984. The company provides print and mailing services and has facilities throughout the UK, including a disaster recovery site in Warrington, Cheshire and envelope production in Milton Keynes, Buckinghamshire.