Rescue bid imminent at Global MP
Wednesday, June 25, 2014
A white-knight bidder is poised to step in with a rescue deal for the stricken Global MP business.
Wyndeham owner Walstead Investments has confirmed to PrintWeek that it hopes to rescue the business.
Chairman Mark Scanlon said the firm was in negotiations with Baker Tilly, which is the prospective administrator at Global MP.
Scanlon told PrintWeek: “I can confirm we are attempting to buy the business and we are looking to continue manufacturing from the Bradford facility.”
“We have agreed terms with St Ives, subject to a deal being completed, and have their support as the landlord and largest customer,” he stated.
“We have also agreed with Close Brothers to take on the web presses and other major assets.
"We are trying to maintain as many jobs as possible but it will require changes to the cost base of the company," Scanlon added.
PrintWeek understands that Wyndeham chief executive Paul Utting will address Global MP’s workforce later today.
Scanlon said that time was of the essence. “We want to do this deal by the close of play on Thursday, at the latest.”
In 2011 Walstead acquired St Ives’ magazine web printing division in a £20m deal, with the operations subsequently becoming part of Wyndeham.
As part of its disposal of non-core print businesses St Ives then went on to sell its £36m turnover Bradford Direct Mail wing to Kevin Dunstall’s Cogent B2B last year, for £8m.
Earlier this week it emerged that the business, renamed Global MP, was likely to go into administration due to cashflow issues.
A separate Dunstall company co-located on the same site, Global MP Mailing (formerly Prospect), is not thought to be part of the deal.
If successful, the deal would augment Wyndeham's existing direct mail print operation, Print Direct in Stockport which produces continuous stationery for the DM industry.
Update: PrintWeek also understands that York Mailing and Paragon Group have looked at the Global MP business. Neither have commented.
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