A Swansea-based electronics firm has been bought out of administration in a deal saving around 100 jobs.
KSR Electronic Systems, has been acquired by Mechatronics Systems Wales, a subsidiary of JTEKT Automotive UK, for a undisclosed sum in deal struck by joint administrators from professional advisory firm EY.
Going into administration in March KSR, which manufacturers and supplies modules and systems for the automotive sector in the UK and internationally, employed 121 staff.
Some 19 staff were then made redundant.
KSR has been loss-making for the last three years. In 2019, based on a shortened 11 month financial year, it posted pre-tax losses of £2.3m on a turnover of £19.7m.
Joint administrator and head of turnaround and restructuring strategy at EY in Wales and the south West of England, Lucy Winterborne, said: “KSR was not immune to the challenges facing the wider automotive sector, which led to our appointment as administrators to the company earlier this year.
"Our focus was on how we could rescue the business as a going concern, safeguarding jobs for the local area and preserving KSR’s contribution to the regional economy, whilst maximising returns to the company’s creditors.
“The last few months have been incredibly challenging for the business and its employees, so we’re delighted that we’ve been able to complete the sale and secure a future for the business.
We wish the team at Mechatronic Systems Wales and JTEKT every success for the future.”
JTEKT and KSR have a long history of working together and when KSR entered administration at the start of the year, JTEKT supported the Administrators to ensure that the business could continue trading.
EY were advised on the administration process and subsequent sale by Chris Roberts (partner), Katy Seago (legal director) and Vivak Vaish (associate) of DLA Piper.
JTEKT Automotive UK specialises in manufacture and sale of power steering pumps for the automotive industry.
