Posted on 6 February 2015
The business and assets of Custom Systems Limited have been bought out of Administration by advanced engineering materials group Versarien plc.
Bristol based Custom Systems Limited (‘CSL’) manufactured all manner of extruded aluminum products, and heat sinks for the electronics and computing industries, as well as for large machinery and generators.
The Company began experiencing financial difficulty as a result of a reduction in expected turnover on customer contracts, whilst maintaining a high fixed cost base in premises, which were considered too large for current operations. As subsequent attempts to raise external finance proved unsuccessful, the directors of the Company had no alternative but to seek the professional advice of Dean Nelson of Midlands based accountancy and business advisory firm, Smith Cooper.
The prompt sale to Versarien Technologies Limited, a subsidiary of Versarien plc which is listed on the Alternative Investment Market, has secured future customer orders and saved the jobs of the 23-strong workforce.
Following completion CSL’s operations and manufacturing facilities will be relocated to Versarien’s headquarters in Mitcheldean, Gloucestershire. This will provide both business with operating efficiencies and increased sales coverage.
Together, the businesses are able to offer a wider range of thermal products. The acquisition also gives Versarien access to CSL’s prestigious customer base and will provide potential new routes to market for Versarien Technologies’ recently developed porous copper air heat sink products.
Neill Ricketts, CEO of Versarien said: "This is an important acquisition which fits well with our strategy to provide customers with a range of standard and customer specific thermal products, including our patented porous metal foam technology.
“Our further aim is to preserve the maximum number of jobs we can and we look forward to welcoming our new colleagues into the team and sharing our expertise and industry knowledge. CSL’s customers can be assured of a continuation of the high level of service they have come to expect, as well as the opportunity to access an expanded range of products.”
Dean Nelson commented “the acquisition is the best possible outcome for this well-established business and its loyal workforce and we are delighted to have been involved with the restructure, which not only has saved employee jobs, but will also enable Versarien, an ambitious and innovative company, to further expand its operations.”
Dean Nelson was assisted with the transaction by Rachel McCahill-Brown of Nelsons Solicitors, in Leicester.