Private equity firm Breal Capital acquired North West-based aerospace manufacturer Silcoms Ltd in a pre-pack administration deal, safeguarding more than 80 jobs and ensuring the company’s continued operations.

Silcoms, a Bolton-based precision engineering firm specialising in complex aero-engine ring components, industrial chains, and conveyor systems, faced financial distress due to the prolonged impact of Covid-19 on the aerospace sector, supply chain disruptions, and substantial legacy liabilities. This led to the appointment of RSM UK Restructuring Advisory LLP’s Chris Ratten and Gareth Harris as joint administrators.

Following a marketing process, the administrators successfully facilitated the sale of Silcoms’ trading business and assets to Silcoms II Ltd, backed by Breal Capital. The transaction secures the company’s future and retains its highly skilled workforce.

Chris Ratten, partner at RSM UK, highlighted the significance of the deal, stating, “Silcoms is an established precision engineering business that has faced challenges beyond its control. The strong interest in the company underscores its longstanding reputation. We are pleased to have played a role in securing its future, preserving jobs, and maintaining its service continuity in Bolton.”

Mick Welden of Breal Capital expressed enthusiasm for the acquisition, saying, “This transaction strengthens Breal’s Aerospace Group and demonstrates our commitment to supporting skilled manufacturing in the North West. We look forward to working with Silcoms’ dynamic management team to drive growth through strategic investment and operational expertise.”

The deal marks another strategic move by Breal Capital in the aerospace sector, reinforcing its presence in precision engineering and manufacturing.