DWF advised its long-standing client Barrett Steel Limited, on the distressed deal involving complex structural issues surrounding the failure of the West Midlands based Aartee Bright Bar steel business which was placed into administration in February 2023 by its lender, FGI Worldwide. Alvarez and Marsal were appointed as joint administrators of Aartee Bright Bar and Aartee Bright Bar Property.
The deal immediately followed simultaneous high court proceedings whereby Aartee’s immediate UK holding company, Aartee Steel Group was placed into compulsory liquidation last Friday. Aartee Bright Bar had until then, operated as Britain's largest distributor of engineering steel products but was thwarted by rising energy and procurement costs.
Barrett Steel's rescue deal means it will take on the group’s distribution business in Rugby, Bolton, Newport and Southampton, its Bright Bar business operating out of Willenhall and freehold and leasehold properties at the sites and secures the continuation of employment for 186 employees under a strong operational platform.
Natasha Atkinson, senior restructuring partner at DWF, led the multi-disciplined deal team supported by associates Monica Hamid and Samantha Francis (restructuring), and colleagues James Speed (real estate), John Toon (tax), Marcus Fink (pensions), Nigel Crebbin (employment), Tughan Thuraisingam (data protection).
Natasha Atkinson said: "This was a complex deal supported by experts across our business. We're delighted to have helped Barrett Steel in its acquisition and secure the business operations of Aartee Bright Bar. "
Marcus Tyldsley, chief financial officer at Barrett Steel, said: “We’re delighted to share that we’re acquiring a new business as part of our ongoing expansion strategy.
"As new owners, we’ll prioritise the safety and wellbeing of our employees, and work collaboratively with our new team to bring fresh ideas and perspectives to the table".