Published on 29 - February - 2012
Tinsley owner buys Avocet HardwareHardware distributor Avocet Hardware has been bought out of administration by the owners of Eliza Tinsley.
Administrator Duff & Phelps concluded the sale on February 24, selling Avocet as a going concern to L Fibrelok Ltd and RTMV Jain Ltd, both operating companies of the Atlantic Group. Atlantic took over Eliza Tinsley, one of the UK's leading suppliers of chain, rope, hardware and accessories, in 2006.
Avocet was established in 1978 and has through three divisions. One grew to become the UK's leading supplier of fixings, fasteners and general ironmongery to the DIY retail sector, and there is also a door and window hardware division, and a lock division, established in 2010 to market an innovative high-security door lock.
Avocet was the subject of a management buyout in November 2007, after a highly successful year with operating profit of £1.43m on sales of £40.4m. But sales dropped by 9% in 2008, sending the company to an operating loss of £692,000 - a loss which increased to nearly £1m the following year despite a 5% recovery in sales. In December 2011, Avocet sold its loss-making Chinese factory, which makes door and window hardware.
But it was the collapse of Focus DIY which dealt the business a final blow - Focus went under in 2011 owing Avocet a total of £430,000 - and Avocet Hardware was placed in administration on January 23 this year.
The deal is the Atlantic Group's fourth acquisition in the UK in the past six years. All the previous acquisitions have been successfully turned around and are running profitably, and Atlantic is confident that with the turnround strategies in place, Avocet's service levels will be back to normal soon.
"We are delighted with the outcome of this administration," said Andrew Stoneman of Duff and Phelps. "Not only was Avocet sold as a going concern but we managed to secure the jobs of 108 employees."
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