Rescue deal struck for ERH businesses
Two businesses which formed part of troubled Bristol-based construction group ERH have been taken over by Welsh engineering and facilities management giant Centregreat.
It follows the administrations of sister companies ER Hemmings (Building) Ltd and ERH Construction Ltd, which put almost 40 jobs at risk.
Nigel Morrison and Alistair Wardell of Grant Thornton were appointed joint administrators of the two ERH businesses on 4 November 2014.
Both ceased trading last month following a financial restructure, with directors filing a notice of intention to appoint administrators on 23 October. A statement from Grant Thornton said the future of the companies' 37 staff was "not clear at present".
However, ERH (Holdings) and its subsidiary ERH Communications have now been bought by £30m-turnover Centregreat. The acquirer employs 350 staff and is base in Bridgend, South Wales.
Its managing director, Jerome Mathias, said: "The acquisition of ERH Holdings and ERH Communications is great news for all as the synergies between the companies will create a strong strategic alliance which will enhance our offerings to our customers and protect future employment for ERH employees."
Nigel Morrison, head of regional advisory at Grant Thornton in Bristol, added: "The building and construction industry has suffered considerably over the past few years, and it is disappointing that, despite the efforts of the companies’ management teams, another employer has been unable to survive in this difficult economic climate.
"However, the announcement that Centregreat has taken over the remaining companies in the ERH group is very positive news indeed."