Lancashire-based Gilwood (Fabricators) Company Ltd, a metal fabrication business which specialises in making pressure vessels and static process plant equipment for a variety of industrial sectors including oil and gas, petrochemicals, nuclear, food and drink, has been bought out of administration in a pre-pack deal.

Gareth Harris and Chris Ratten of RSM UK Restructuring Advisory LLP were appointed joint administrators after global and economic uncertainty impacted new orders due to rising interest rates and material costs. The firm has now been sold to DC Norris and Company Ltd, a UK market-leading manufacturer of industrial food and beverage processing equipment who employ over 200 people and has an excellent international reputation. Gilwood employs 26 members of staff, including many skilled tradesmen and all jobs have been saved as part of the sale.

Chris Ratten, RSM UK restructuring partner and joint administrator, said: “Gilwood is an established fabrication company in the North West, and it is unfortunate that it has suffered over the last few months as a result of a delay and postponement of orders. Much of this is down to the economic uncertainty faced in the global markets by its customers and the decline in capital investment in projects due to rising interest rates and costs of materials.

“Given the ongoing economic challenges, we are pleased to have helped save the future of the company and support the regeneration of its existing pipeline. Securing its sale to DC Norris will protect all its skilled workforce for many years to come and allow Gilwood to continue operating in the market.“

David Norris at DC Norris and Company, concluded: “We were very sorry to see the demise of the well-respected family business Gilwood (Fabricators) Company Ltd. Working with RSM, DC Norris has acquired the business as well as the assets from the administrator, and will also offer all the employees new jobs in a newly formed addition to the DC Norris group called Gilwood Ltd. The company will have our full commitment and support to maintain its high standards of quality and service going forward, including an investment in new equipment to improve efficiencies over the next few years.”