October 16, 2019
Enact saves Bawtry Carbon International
More than 80 jobs have been saved after Enact, the dedicated £30m SME fund, agreed to buy the trade and assets of Bawtry Carbon International. Bawtry manufactures consumable carbon-based products for use in aluminium smelting and has an international customer base exporting globally from its facility in Austerfield, Doncaster.
Bawtry Carbon is one of only three western world suppliers of carbon cathode products for the aluminium industry, operating from a 56 acre site where it has traded since 1972.
The investment in Bawtry Carbon is the third completed by Enact Fund II, just four months after closing the second fund at £30m.
Chris Cormack, Partner leading the Enact fund, joins Bawtry Carbon board and will support the existing management team. He commented “We are delighted to have completed the transaction resolving an uncertain time for employees and other stakeholders. Bawtry Carbon has a unique position in a growing market and we are excited about supporting the management team who have shown remarkable resilience over the last 5 years, firstly to rebuild the factory following a fire in 2013 and latterly stabilising the business despite parent group pressures creating cash constraints that were no fault of the company, which was trading profitably, that ultimately led to the administration”
Carl Hammerton, Managing Director of Bawtry Carbon, added: “The business is built on strong partnerships in the supply of high quality carbon products to our customers within the primary aluminium industry. Priding ourselves not only in the high quality products we provide but equally in the proactive approach we offer to our customers. Due to our strong market presence & reputation there was significant interest from several parties, with one company standing out in their determination to join us on our journey. We are therefore pleased that in Enact we have a partner that we believe will add true value to us as a business & that of all our stakeholders”
The acquisition followed the appointment of administrators Sarah O’Toole and Jason Bell of Grant Thornton UK over Bawtry Carbon International Limited and Bawtry Investments Limited in September 2019. Sarah O’Toole, Partner at Grant Thornton commented: “We are delighted to have secured a deal which not only gives the Bawtry business a sustainable future, but also preserves 80 jobs in the local community. We wish the team at Enact and the management team every success as they take the business forward.”
Enact Fund II, invests transformational capital of up to £5 million into UK based SMEs that have a robust business model but are facing capital constraints, strategic challenges or operational issues.
The individuals who comprise the investor base of Enact Fund II include successful entrepreneurs, existing and former Board members of successful Yorkshire businesses and management from former portfolio companies. The single biggest investor in the Fund is the Endless and Enact partner and employee group.
Enact was advised by James Fawcett of Gordons and Russ Cahill of the Tax Advisory Partnership.
The Grant Thornton team was led by Sarah O’Toole and Stephanie Baker and advised by Tim Taylor and Calum Redhead of Addleshaw Goddard.