Deanestor acquires Havelock brands out of administration
Havlelock collapsed in August this year
One of Scotland’s best-known furniture and fit out brands, Havelock, has been acquired out of administration for an undisclosed sum by contract furniture specialist Deanestor.
The deal for the intangible assets of Havelock International Ltd also includes the leading education fit out brand, ESA McIntosh. It will not lead to a return of workers to the collapsed Kirkcaldy plant which is now vacant.
One-time UK market leader Havelock Europa was listed on the main London Stock Exchange for 31 years, from 1987 to 2018 with a peak turnover of £138m in 2008.
In August this year it was put into administration for a second time with the loss of 247 jobs. David Baxendale and Zelf Hussain of PwC took control of affairs.
It had been sold through a pre-pack administration process last year to a new firm established by turnaround specialist Rcapital.
Commenting on the latest deal, Richard Tonkinson, executive director at Mansfield-based Deanestor, said, “Despite their long trading history and a well-established market position, Havelock and its subsidiaries experienced increasingly difficult trading conditions, largely due to their exposure to the weakening retail and high street banking sectors. This culminated in Havelock International falling into administration earlier this year.
“As one of the UK’s leading fit out specialists in healthcare, education, student accommodation and build-to-rent, Deanestor is well placed to build on Havelock’s long history and market position, and continue to service its client base in these core sectors.
Deanestor, which has a plant in Dunfermline, is financially strong, having recently announced a record order intake for the first half of 2019, said Mr Tonkinson.
“Last year we completed a £1m investment programme at our factory in Mansfield which included installation of the latest computer-controlled cutting equipment and a second production line to double capacity of cabinetry.
“Our team is well resourced to provide the highest quality and service levels in our sector, reinforced by our high levels of repeat business.
“The acquisition of the Havelock brands further strengths our position as one of the largest interior fit-out businesses in the UK and the leading furniture, fittings and equipment supplier to the NHS.
“The Government has recently announced £14bn of extra funding for schools over the next three years and a £13bn boost to NHS capital spending. This is very positive for our business, the wider construction industry and UK manufacturing.”
As part of the acquisition, Deanestor has acquired the rights to the Havelock International brand and 13 sub-brands, registered trademarks and product lines including ESA Healthcare and ESA McIntosh. The deal also includes all of the Havelock domain names and the full catalogue of Havelock, ESA McIntosh and Godfrey Syrett product designs.
Deanestor provides high quality contract furniture solutions to construction clients and contractors for healthcare, education, student accommodation, build-to-rent and laboratory projects – both new build and refurbishment.
It offers bespoke design services to meet specific project requirements and is responsible for installation to provide a seamless approach for its customers and a single point of contact.
Fife-based Havelock business was the UK market leader in the manufacture and installation of furniture across a diverse range of sectors including education, healthcare, hospitality, retail, banking and student accommodation. The University of Edinburgh, Faslane Naval College, University College London, Harvey Nichols, John Lewis and Lloyds Banking Group were among its customers.