More than 100 jobs have been saved after a County Durham dairy packaging business was bought out of administration.
Administrators were called in last months to iTEC Packaging, which has operations in both Chester-le-Street and Mansfield, employing more than 200 people across the two bases, which makes packaging for major food manufacturers and distributors across the UK and Europe. Latest accounts from iTEC Packaging (Chester-Le-Street) Limited, covering 2021, show how the business was significantly impacted by the pandemic – and was then excluded from a major group deal.
The accounts for iTEC Packaging – previously called Paccor UK Limited – covering 2021 show how its losses widened from £2.9m to £7.4m as the pandemic continued to have a significant impact on activity levels. The accounts also detail how shareholder Lindsay Goldberg had signed an agreement to sell Paccor Group in a major deal to Danish group Faerch, but that the UK business was not part of the deal.
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That triggered a carve out process for the UK companies to other Lindsay Goldberg entities, alongside a marketing process for the sale of the company to a third-party buyer. Now Martyn Rickels, Simon Farr and Allan Kelly of specialist business advisory firm FRP have sold the business and assets of iTEC Packaging (Chester-Le-Street) Limited, which went into administration on April 5, to Essex-based business Shalam Packaging Group.
The deal includes the transfer of all 117 staff and assets on a going-concern basis with immediate effect. The acquired business will trade as Shalam Thermoforming (UK) Ltd. It’s not yet known if the Mansfield operation has also been acquired.
Shalam Packaging is a family-owned group of businesses having multiple sites across four countries. Involved in the manufacture of plastic packaging since 1982, the business has expanded to now include thermoforming, injection moulding, blow moulding and a polymer recycling facility.
Man’e Shalam of Shalam Packaging said: “We are excited to expand our footprint in the UK with the addition of this fantastic facility. Shalam currently operate an injection moulding and IML factory in Basildon which we have owned for more than fifteen years. Now having thermoforming solutions manufactured here in the UK allows us to provide a wide portfolio of technologies backed up by the products from the wider group and material from our in-house recycling facility”.
Martyn Rickels Joint Administrator of iTEC Packaging, said: “The sale of iTEC Packaging to Shalam Packaging in less than a month is a brilliant outcome for all involved. It not only helps with continued production for the customer base, but it also sees 117 jobs saved. We wish Shalam Packaging all the best with the acquisition and their future plans.”
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