For Jablite, a UK producer of EPS, the lockdown period was a difficult period. According to managing director Richard Lee, the company had an exceptionally strong start to 2020. However, the halt-to-business ultimately led to the decision on the part of the Board of Directors to enter a pre-pack administration process, as a result of which chairman John Colley, managing director Richard Lee and financial director, John Cooper are now co-owners of the restructured company, together with new investment partner, BEWiSynbra.
The new company that will continue trading as Jablite.
In the UK, pre-pack is an insolvency procedure in which the sale of the business is ‘Pre-packaged’ prior to the appointment of administrators and effected immediately on their appointment. The one big benefit to such an arrangement can be that it allows the business to continue operating, albeit as a new company, safeguarding jobs. While in many cases the purchasers are the directors of the company, they do need to have funding in place so that the newly incorporated company can buy the assets of the old company at fair value.
In this case, the funding was secured from BewiSynbra, who entered into an agreement to acquire a minority stake in the newly formed EPS insulation and packaging company.
BEWiSynbra is a leading manufacturer of expandable polystyrene (EPS) in Europe, it is well-known for its focus on sustainability and for leading change with its closed-loop strategy.
This new investment in Jablite guarantees a secure, sustainable supply chain to all Jablite customers with the additional benefit of access to the most innovative EPS supplier in Europe.
BEWiSynbra Board Member, Rik Dobbeleare, has been appointed a non-executive Director of Jablite and he represents BEWiSynbra on the Jablite Board.
He noted that BEWiSynbra is very pleased to have this opportunity to invest in Jablite, although it has arisen out of unfortunate circumstances.
“The fit between our two businesses is a good one with many positive synergies and similarities of outlook,” he said.