By: Anthony Clark
February 26, 2014
The British arm of Constar International Holdings LLC has been purchased by Sherburn Acquisitions for 4.3 million pounds ($7.1 million) after its U.S. parent collapsed into bankruptcy following the loss a contract with PepsiCo.
According to Deloitte, which handled the administration for the English blow molding unit, based in Leeds, firm there remains profitable and will retain all its 140 employees. Turnover was around 80 million pounds ($133 million) for the last full year of trading.
The sale ends a period of uncertainty for the employees and other key stakeholders after the Constar Group, including Constar UK, entered Chapter 11 bankruptcy proceedings in December 2013.
Dan Butters, a joint administrator at Deloitte, said: "Having worked with the company and its key stakeholders in challenging circumstances over the last couple of months we are delighted to announce the going concern sale of the Constar UK business, which preserves a significant number of jobs in the local region."
The U.S. operation was purchased by Plastipak Packaging Inc. for $102.45 million.
Sherburn, an acquisition vehicle set up to handle the Constar purchase, is associated with Greybull Capital, which previously worked with troubled retailers Game and Comet.