Oakham manufacturer Linecross saves 120 jobs after buying stricken rival
A manufacturer which supplies Bentley and JCB has grown by more than 50 per cent after buying a stricken rival in a deal which safeguards 120 jobs.
Linecross, of Oakham, which makes specialist plastics for the automotive sector, has taken over BI Composites, of Cannock, Staffordshire, for an undisclosed sum.
BI Composites, a leading manufacturer of moulded components made from composite materials, went into administration in November, blaming a £4 million pension deficit.
BI also has a factory in Halesowen, Worcestershire.
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Linecross had a turnover of £15 million last year which it expects to grow to about £23 million following the deal.
The firm, founded 40 years ago, is based in Station Road, Oakham, where it employs about 180 people.
Managing director Stuart Fry said the business has grown steadily since a management buyout in 2003 and the takeover of BI Composites, which has been renamed Linecross Composites, fits in well with the firm's long-term expansion plans.
"We are delighted to have completed the deal to buy BI Composites and with it safeguard the future of a significant number of jobs," he said.
"Linecross and BI Composites are both innovative and creative companies which share very similar production processes and customer bases, such as working with the likes of Bentley and JCB, and we're excited to be joining the two together."
Brian Hamblin, partner at administrator Chantrey Vellacott DFK, which has an office in Grove Park, Enderby, said a number of businesses had been interested in taking over BI Composites.
"Linecross has a strong reputation as one of the leading manufacturers in the sector," he said.
"Once a deal had been accepted there was a commitment by both parties to complete the deal quickly.
"With the help of the lawyers Helen Readett and Sam Payne from SGH Martineau for the administrators and Andrew Heeler from Hegarty for the buyers the legal work was completed within an impressive 36 hours."