A multi-million-pound deal has given two Gateshead factories a new future after the collapse of a century-old business left around 180 people out of work, saving the UK’s only suspended-ceiling manufacturing facility from closure.
UK law firm RFB Legal has advised Turkish ceiling manufacturer Prosista on the acquisition of former owner Zentia’s factories and manufacturing assets, following Zentia’s administration in June amid rising energy costs and falling sales.
Without Prosista’s acquisition, the UK would have lost its only suspended-ceiling factory, ending decades of British exports and leaving the country reliant on imports.
The deal includes manufacturing premises, machinery, stock and intellectual property, with Prosista already recruiting former workers and planning to create job opportunities for more than 100 people at the site.
The collapse of Zentia, which had its headquarters in Newcastle, brought production at two Gateshead factories to a halt, disrupting a manufacturing operation that had been producing ceiling products in the North East since 1948.
The transaction was completed against a demanding deadline, with Zentia’s administration requiring RFB Legal to coordinate negotiations with multiple parties while addressing issues involving the property and remaining employees.
The transaction was led by RFB Legal Senior Partner Deniz Oguzkanli and Corporate Partner John Andrews, with Employment Law Partner Adam Pavey, Samuel Glasgow, Jasmine Azaei and Gauri Dalvi also advising on the acquisition.
This is a welcome investment in British manufacturing and an opportunity to bring more jobs back to Gateshead, and it’s encouraging to see an international manufacturer recognise the potential of these facilities and plan further investment in the area.
Deniz Oguzkanli, RFB Legal Senior Partner
He continued: “Buying from administrators meant dealing with several parties, all with different interests, while making sure our client was protected from risks connected to the previous business.
“With so many different aspects to the deal, our teams needed to work closely together to make sure nothing was overlooked. Our priority was to protect our client’s interests while getting the acquisition completed within a demanding timeframe.”
Prosista is one of Turkey’s leading ceiling manufacturers, supplying products to domestic and international markets, with the acquisition allowing it to expand its product range using Zentia’s existing production facilities.
Mehmet Lacin, Director at Prosista, said: “There’s a great deal of history behind these factories, and we want to build on the skills and manufacturing experience developed in Gateshead over so many years rather than see them disappear.
“By combining our expertise in metal ceilings with the mineral ceiling and acoustic products made in Gateshead, we can develop new product ranges while investing in the facilities and creating more opportunities for local workers.”
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