Quantuma was approached by the steel company’s directors in early November after it experienced trading difficulties following a period of heavy losses. After speaking to more than two dozen interested parties, Avon Steel entered into a brief exclusivity period with Breal Capital before completing a deal on 22 November.

Avon Steel was founded in 1981 and services the south west and south wales from its branches in Midsomer Norton and Plymouth. The family-run firm had built up to a turnover of £12m.

Heavy losses during 2017 were compounded by a legal dispute that led to credit insurers withdrawing cover, leaving the company unable to obtain supplies of steel to satisfy customer orders.

Graham Randall, partner at Quantuma, said: ‘Trading conditions this year were very tough and the company very quickly found itself facing potential closure as supplies and consequently cash dried up. 

‘There was a very real threat that if a share sale could not be achieved the company faced administration, but the directors took action quickly and instructed Quantuma to look for a buyer in an accelerated timeframe.’

Randall reported significant levels of interest in the business, saying: ‘We are delighted that Breal Capital, who already own successful companies in the sector, have used their financial backing and industry expertise to act decisively in securing the future of the company and the jobs of its 49 staff.’

Report by Pat Sweet