Seal Sands deal marks quiet quarter
A MANAGEMENT buy-out of the Seal Sands’ Evonik Degussa chemical plant was among the few acquisitions made in an increasing quiet North-east market last quarter, according to accountants PwC.
In its latest deals survey covering January to March 2009 it recorded the lowest deal value in six years - at £59m. Other notable announcements was Frutarom’s intended purchase of Hartlepool’s Oxford Chemicals for £8.25m. The largest recorded regional transaction in the period was the £32.5m buy-out of Prudhoe pharmaceutical company Quantum Specials by its founders, who were supported with a funding package from Yorkshire Bank and LDC.
PwC said the limited level of activity was only bolstered by the number of struggling companies needing new ownership.
“We are unlikely to see a sustained increase in deal activity until the final quarter of 2009 at the earliest,” it concluded.