In its first acquisition since divesting its supply chain business to focus on its higher growth advanced composites business, Advanced Composites Group Ltd (ACG)'s parent company Umeco plc ('Umeco') announces today that it has purchased certain of the assets of Fenotec Ges.i.L ("Fenotec") from the administrator for the cash sum of €2.2 million (c£1.9 million).
ACG will be trading through these new facilities as ACG (Umeco Composites GmbH).
The assets purchased, which are located in Beelitz near Berlin, comprise freehold buildings and high quality production equipment which will be used to manufacture Umeco's range of prepreg advanced composite materials. Umeco will employ eleven of the former employees of Fenotec.
Fenotec was placed into administration in December 2010 shortly after investing €5 million in new buildings and machinery in a failed attempt to enter the prepreg market. Its failure was caused by a shortfall in sales revenues due to the lack of an industry recognised range of products. Umeco expects to quickly add much needed additional volume by manufacturing in Beelitz its own established range of prepreg materials. It will also distribute from this facility its wide range of structural and process materials for the advanced composites industry.
Umeco's existing European prepreg facilities are in the UK and this acquisition provides both additional prepreg manufacturing capacity, and a distribution base in Continental Europe that will significantly reduce lead times to its customers in Germany and Southern and Eastern Europe.
Andrew Moss, Umeco's Chief Executive said:
"The acquisition of the Fenotec assets provides an excellent opportunity for Umeco to get closer to our customers in continental Europe and to expand our manufacturing capacity at a time when the composites industry is enjoying significant growth. The equipment we are purchasing is virtually brand new, of a very high quality and alleviates the immediate term need to expand capacity at our existing facility in Manchester."