BUILDING products company Heywood Williams has completed a major shake-up to take the business into private hands.
The Elland-based firm’s subsidiaries have been sold to new company Arran Isle Ltd as part of a deal which gives its bankers – Lloyds Banking Group and National Australia Bank – an 80% stake in exchange for writing off almost £21m of debt.
The banking syndicate has also provided £6m of additional finance to support the growth of the business while agreement has also been reached with the independent UK pension trustee over a new 17-year payment schedule for the firm’s UK defined benefit pension scheme.
Chief executive Robert Barr said the move had created a new, stronger group with the right capital structure to tackle an anticipated slow recovery in residential housing markets and to fund growth as markets recover.
The restructuring means Heywood Williams is now a private company, having delisted from the London Stock Exchange.
Mr Barr said: “We are very pleased to have completed the comprehensive restructuring of Heywood Williams.
“This solution secures over 1,000 jobs, allows the group, our suppliers and our customers to continue with business as normal and protects pension fund members.
“The newly refinanced group has a great future and we look forward to guiding it into a period of growth as residential housing markets start to recover.”
The group supplies hardware such as handles, hinges and locks across the UK and Europe as well as building products in the USA.