UK-based steel service centre and distributor Bemaco Steel, which was declared insolvent last month, has been acquired through a pre-pack administration process by FXSteel for £4.6 million ($5.8m). The latter is a connected party, Kallanish notes.
The accelerated sale of the Cardiff-based business, which became insolvent after a ruling against the firm in a contractual case, was managed by business advisory firm FRP.
Under the deal, the business will continue to be led by Bulent Unal, previously the sole director of Bemaco Steel, alongside fellow directors Murat Unal and Mark Halley.
Bulent Unal says: “This deal represents a fresh start for what was historically a profitable business with a strong client base. Under the FXSteel banner, we remain a major steel broking, distribution and specialist laser cutting of tubular steel products business based in Cardiff Docks and our combined years of experience within the steel industry mean we are a trusted partner for product sourcing, material financing and distribution.”
Bemaco Steel was founded in 1987 and achieved revenue of £40m in 2019, though turnover was subsequently impacted by the pandemic. The firm’s stocking facility at Cardiff Dock carries in excess of 6,000 tonnes of steel. Bemaco says it offers hollow sections, merchant bar and hot rolled sheet for next day delivery.
Adam Smith Germany