Our Business Recovery & Restructuring team have successfully advised on the sale of the business and assets of Coomtech Ltd, saving all jobs within the business.
Established in 2011, the business focused on the development of clean drying technology, with a particular emphasis on improving inefficiencies in processing raw materials from mining activities through lower-energy solutions.
The business had faced a series of challenges in recent years, with high development costs that required external funding and infrequent revenue streams through a small number of large contracts. With ongoing working capital pressures and a reduced investor appetite due to a shift towards AI-focused ventures, the Company sought early assistance our Business Recovery and Restructuring team for guidance on its next steps.
The business and assets were acquired out of Administration by Kinetic Air Dryers Limited, saving all jobs and preserving its innovation and the continuity of expertise. The sale safeguards the ongoing research and development of the clean technology pioneered by the business, with Kinetic Air Dryers Limited being able to build on the Company’s capabilities and accelerate innovation in the sector.
Philip Jarvis, CEO of Coomtech, commented:
“This transaction was critical to the future of this groundbreaking British industrial innovation. It was important to keep the team together else the know-how would be lost. Acquiring the business via the new company gives this technology a fresh new opportunity to succeed. I was very pleased with how PKF handled the process. It required significant attention to detail and benefited from the PKF team’s approachable and communicative style.”
Dean Nelson, head of Business Recovery & Restructuring, commented: “We are pleased to have secured a positive outcome for Coomtech Ltd, ensuring a future for the team, business and its employees, along with a platform for future growth and prosperity. For companies facing financial pressure, seeking professional support early can make a real difference to the options available, and can give your business the best chance of securing a successful outcome. We wish Kinetic Air Dryers Limited and the team the best for the future.”
Our team worked closely with Emma Taylor and Clare Foss of Browne Jacobson LLP, who acted on behalf of the sellers, and Sundip Mapara of Howes Percival LLP, who advised the purchaser. The combined efforts of all advisers were integral to the successful completion of the transaction.
