Jobs saved as Haymills sale completed

THE takeover of Suffolk building firm Haymills has been completed - saving around 430 jobs, many of those in Suffolk.

THE takeover of Suffolk building firm Haymills has been completed - saving around 430 jobs, many of those in Suffolk.

The news was announced this afternoon by the company's administrators PricewaterhouseCoopers, which had been called in as Haymills suffered severe financial troubles.

A statement said the majority of the Haymills group, based in Stowmarket, had been sold to Vinci Construction UK Ltd.

The future of the 98-year-old construction firm, which has worked on some of the most high-profile building projects in the region in recent years, had been left in balance after its overdraft was suspended by the Royal Bank of Scotland two weeks ago.

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Payments going out of the account were frozen and staff had not received their wages since. Sub-contractors, who are owed thousands of pounds, have also gone unpaid.

Stephen Oldfield, joint administrator and partner at PricewaterhouseCoopers LLP said:

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“We are very pleased to announce the sale of the majority of the Haymills group to VINCI Construction UK Limited. The last few days have seen an intensive period of activity as we worked with the group to explore the options available to them.

“We feel that this represents the best outcome for the business and will ensure the Haymills brand continues to exist and provide this well known East Anglian business with a more secure future.”

He added: “The group was facing severe difficulties meeting their financial obligations and losses in its Gibraltar subsidiary.

“As a deal with a potential purchaser could not be concluded in time, we immediately initiated an urgent search for a buyer. The claim from Gibraltar rendered the UK group insolvent which left no alternative but to conclude a sale out of administration.

“This is a prime example of when a pre-pack sale can be the best option. In this case, as this is a contracting company, any attempt to sell this type of business after an administration appointment is fraught with legal and operational difficulties which would have likely caused the business to collapse.”

The Haymills group specialised in new build, refurbishment and property maintenance within public and private sectors including education, healthcare, commercial, arts/leisure, conservation and residential.

David Joyce, managing director of VINCI Construction UK limited said: “The acquisition is a significant step in our strategy of consolidating our presence in the sectors of facilities management and maintenance, as well as giving us a presence in the East Anglian region through the contracting side of the Haymills business.”

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