Rescue deal saves 133 NI jobs - Insider Reports

A rescue deal for a Derry/Londonderry-based engineering business, which has recently secured contracts with major suppliers, has saved 133 jobs.

John McKee Partners Philip McBride and Andrea McCann where retained as the NI Lawyers to advise Schivo on the property and employment aspects of the transaction

Waterford-based Schivo announced it had acquired Maydown Precision Engineering (MPE) last week, but Insider can reveal the company was bought out of administration.

Philip Duffy, Stephen Clancy and Pearse Farrell of Duff & Phelps were appointed as administrators to MPE on 24 July 2015.

Duffy told Insider that an immediate sale of the business and assets was achieved.

"The sale preserved employment at the company," he added.

Schivo said the takeover has created a "major indigenous supplier to the global aerospace manufacturing industry on the island of Ireland".

It added that MPE's workforce will remain at its Derry site from which it will continue to fulfil its contracts.

MPE supplies key components of the aero-structure, aero-engine, engine housing and actuation systems for aircraft manufacturers.

In July 2014 Manchester-based A2E Venture Catalysts bought a majority stake in an investment which created 40 jobs.

Post-acquisition, it secured a number of contracts with "major first tier suppliers" to manufacture and supply machined parts for the ongoing and new Airbus and Boeing programmes.

Managing director of MPE Sean Phelan said the deal represented "an exciting new chapter" for the company.

"It secures our future and presents tremendous opportunities for us," he added.

"For nearly 30 years we have supplied the aerospace industry. By becoming part of a larger organisation, MPE will be able to better support its customers and it will enable greater investment and commitment to customers in the future."

Schivo owner and chief executive Seamus Kilgannon added: "Schivo decided to acquire MPE because it has confidence in its proven track record in delivering for customers, and in the wider expertise of in the aerospace manufacturing industry in Ireland.

"We believe that the enlarged Schivo group is well positioned to capitalise on strong global growth in the aerospace sector.

"This deal shows that we are willing to invest in the long-term future of the company."

EY Corporate Finance acted as lead advisers to Schivo on the transaction.

By Matthew Ord, Digital Staff Writer - Insider
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