680 jobs saved as nmcn divisions sold to investor Svella

Aaron Morby 3 weeks ago
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Private investment vehicle Svella has swooped to buy the telecoms, plant hire, transport and accommodation operations of failed contractor nmcn out of administration.

Andrew Tinkler, Svella chairman, said the deal secures jobs and contracts for national telecoms clients
Andrew Tinkler, Svella chairman, said the deal secures jobs and contracts for national telecoms clients

The firm has been working in the wings after revealling last June that it hoped to rescue nmcn with a £24m refinancing deal, which it never managed to agree terms on with the nmcn board.

The deal to buy three nmcn business units from administrator Grant Thornton secures over 680 jobs.

A further 900 jobs have been saved by Galliford Try’s deal to buy the nmcn water business.

Since nmcn announced its intention to appoint administrators on Monday, Svella has been working with Grant Thornton to consider options within a short timeframe to secure the best future for the businesses and employees.

Joint administrators were formally appointed last night allowing terms to be agreed to acquire the businesses.

The acquisition by Svella will enable the telecoms division to continue servicing customer contracts, including telecoms infrastructure services for BT, Virgin Media and CityFibre.

The purchase of the plant hire, transport and accommodation businesses, which include an extensive fleet of plant, machinery, vehicles, mobile offices and site cabins, allows Svella to supply the telecoms business with the assets it needs to successfully trade.

Svella said it now had an extensive platform to exploit the growth potential of the telecoms business in the expanding sector, while developing a full plant hire offering for third parties.

Andrew Tinkler, Svella chairman, said: “Nmcn was one of the UK’s fastest-growing telecoms contractors and was actively supporting the government’s ambitions for nationwide coverage of ultrafast fibre broadband through a number of significant infrastructure contracts and frameworks. We aim to continue to deliver on these ambitions.

“These business divisions have growth potential and we will work closely with management teams to develop a comprehensive strategic plan and provide the support and investment to deliver operational excellence, enhance their customer proposition and facilitate growth.”

Svella is also a secured creditor over the operating properties of the nmcn business, secured against its outstanding bridging facility.

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