Three divisions have been bought by Ashtead Plant Hire Company as the Hewden Group enters into administration
Ashtead Plant Hire Company has purchased some of the Hewden Group’s assets, it has emerged.
Over the weekend it was revealed Hewden was facing the administrators as the firm failed to find investors. Deloitte had been working with the group to refinance or sell the business to cover £190m of borrowings. However, these efforts failed and administrator EY was appointed today.
More than 200 job losses
EY said it expects 251 jobs will be lost at the firm but some 133 staff members will transfer to Ashtead as part of the buyout process of certain assets.
A-Plant has purchased three divisions of the Hewden Group for £29m. This includes the access and power generation assets, the onsite plant business, and the businesses and assets of Interlift.
Sam Woodward and Colin Dempster, of EY’s restructuring team were appointed as joint administrators of Hewden businesses: Hewden Stuart; Hewden Properties; Interlift; and The Rigging House.
Woodward said: “It is with regret that 251 people have been made redundant.
“Our specialist team will work with those affected to help them claim outstanding wages and other payments due from the Redundancy Payments Office.”
Challenges in the way of reshaping the business
He added that attempts to “operationally reshape” the business had “proved challenging with the group’s capital structure and the recent trading environment.”
He added: “Management recently undertook a number of initiatives including approaching new funders and potential acquirers to recapitalise the business, but unfortunately these efforts proved unsuccessful.”
A-Plant chief executive Sat Dhaiwal said: “This acquisition significantly enhances A-Plant’s offering in the industrial sector where we have been keen to develop our capabilities for some time.
“We are pleased to be taking over a number of important onsite depots at major petrochemical facilities and will ensure a high level of service is maintained for all customers through the integration process.”