Champion Laboratories’ gas turbine business has been sold to Nottingham-based firm Micro-Mesh Filtration for an undisclosed sum following the appointment of Graham Busby and Dilip Dattani of RSM Restructuring Advisory LLP as joint administrators.
The Company, which was owned and supported financially by a U.S group, entered administration on 5th July due to the loss of financial support it relied on to continue to trade following the U.S entity entering Chapter 11.
A key part of Champion Laboratories’ business was manufacturing gas turbine filters. The sale of this part of the business will complement Micro-Mesh’s filtration range and further enhance its offering through additional products and expertise to increase market share across the UK.
The RSM team continue to consider options to maximise opportunities for creditors and will hold a forthcoming auction to sell remaining machinery and stock.
Graham Busby, RSM Restructuring Advisory partner, said: “The gas turbine business was an important part of the company’s operation. I am pleased we have been able to preserve value for creditors by selling part of the business as a going concern – allowing the Company to continue to trade. The remaining assets, including plant, office furniture and equipment and stock will be sold at auction, which is likely to be held at the end of August”.
Micro-Mesh has been manufacturing filters in Nottingham since 1968 and has enjoyed a long standing relationship with Champion Laboratories, which operates from Mansfield. The “Eurofilter” brand of gas turbine filters is a well-established range with a great reputation and the deal is a great opportunity to expand into new markets.
James Underwood, managing director of Micro-Mesh Filtration, said: “We look forward to working with the existing customers, as well as exploring some new possibilities. We feel that this new acquisition along with our existing range of hydraulic filters will enable us to offer a complete filtration package to customers saving them time and money”.