Arjobex bought by French private equity firm
Friday, July 26, 2019
France-based private equity firm Prudentia Capital has acquired the Arjobex group of businesses, which includes UK manufacturing base Arjobex Limited in Clacton-on-Sea.
Glyn Mummery and Geoff Rowley, partners at FRP Advisory, were appointed as joint administrators for the Arjobex UK business in January and had been continuing to trade the business since that time.
The deal, which was completed yesterday (25 July), has secured all 48 jobs at the Clacton-on-Sea operation.
Arjobex specialises in the production and sales of synthetic paper under the trademark Polyart.
The Arjobex group also has manufacturing bases Arjobex SAS in Rives, France and Arjobex America in Charlotte, US, and employs 160 people in total. All of the companies are interdependent, and Arjobex Limited’s sole customer is Arjobex SAS. All three sites will continue to operate.
The UK operation had been forced to enter administration after its parent company Sequana, which also owned the Arjowiggins group of companies, entered protection proceedings in France. Sequana is now in the process of being liquidated.
FRP Advisory said it worked closely with the French liquidators to ensure a coordinated sale of the group of businesses and certain assets to Prudentia Capital.
“After continuing to trade the business since January, we are delighted to have secured a deal which not only gives the Arjobex business a sustainable future, but also preserves jobs in the local community,” said Mummery.
“We wish the team at Prudentia every success as they take the business forward.”
Roland Germain, founding partner of Prudentia Capital, added: “We are pleased to bring our financial capabilities and operational know-how in order to enable the current management team to expand its business and reinforce their position as the European leader of this niche market.”
This sale is separate to the case of the Arjowiggins Fine Papers UK businesses, which have now been trading in administration for just over six months. A spokesperson for the administrators told PrintWeek today that “the situation with the MBO remains unchanged”.
PrintWeek reported last week that negotiations over the sale of these businesses – the historic Arjowiggins Fine Papers Stoneywood mill near Aberdeen, the Chartham mill in Kent, and a sales office in Basingstoke – are understood to have reached a critical juncture, with Scottish Enterprise confirming that it has agreed in principle to offer financial support for the MBO deal.