UK: Langley Holdings company Clarke Chapman has formed Clayton Locomotives Ltd, which has acquired the assets of shunting, mining and industrial locomotive manufacturer Clayton Equipment Ltd.
Burton upon Trent-based Clayton Equipment had appointed Gareth Prince and Mark Malone from Begbies Traynor as joint administrators on December 8. Prior to their appointment, all 34 of the company’s employees had been made redundant.
The acqusition of the assets by newly-formed company Clayton Locomotives Ltd was completed on January 8. Solicitors from Freeths LLP advised the administrators, while Langley was advised by Gateleys plc.
Clarke Chapman Managing Director Stephen Plant said ’we are very happy to have rescued this historic UK engineering firm from administration and strengthen UK plc in the process. There was competition for the company, and so we’re pleased to have completed this deal. The company has a legacy of creating internationally renowned machinery and in the process showcasing UK engineering talent on the world stage making it a very attractive acquisition.’
Gateshead-based Clarke Chapman specialises in bespoke materials lifting equipment for the rail, nuclear and defence sectors, with its brands including railway crane and rail handling equipment supplier Cowans Sheldon. It has been a subsidiary of family-owned engineering and industrial manufacturing group Langley Holdings since 2000.
Plant said the Clayton business ‘complements Clarke Chapman‘s rail activities perfectly’, adding that ‘both companies were for many years part of Rolls-Royce in the past and are now reunited under Langley ownership.’
Gareth Prince, Partner at Begbies Traynor, said ’it was vital that we moved quickly to find a buyer for Clayton Equipment and are very happy to complete a deal with such a successful group. With the leadership and support of Langley we are sure that it can drive forwards and thrive to give a boost to the local economy. There is also the opportunity to bring back highly-skilled roles to the area after the factory closed at the end of November.’
He said ’to meet our duties we had to secure the best deal for creditors and so — with several serious interested parties — completion took a little longer than expected. We are grateful to all bidders for their patience and ability to progress at pace. However, now that the deal has been finalised we are confident that its new leadership can help Clayton open a new chapter in its history and grow once more on the international stage.’
Clayton Locomotives Managing Director Steve Gretton said the acquisition ‘marks an important milestone and presents a strong platform for future growth’. He said it ‘represents a positive step for the business; its customers, its suppliers and its people, and we are excited about the opportunities ahead’.
Plant said ’it is now time to take the firm forward using the full backing and talented minds of our group. We’re looking forward to reopening the factory soon and plan to recruit. Clayton has been in existence for almost a century and under our guidance we’re sure that its name can continue for many more years yet.’
