50 jobs saved by rescue deal for X-ray firm Bede

Apr 19 2008 by Graeme King, The Journal

X-RAY technology company Bede has been rescued from administration with more than 50 staff all set to be retained by the new owners.

Israeli firm Jordan Valley Semi-Conductors has bought the Durham University spinout from administrator BDO Stoy Hayward, for an undisclosed sum.

Jordan Valley is believed to have been interested in buying before the company’s current difficulties, and now a deal has been concluded.

Bede, based at Belmont Business Park, outside Durham, went into administration at the end of last month. Toby Underwood, a partner at BDO Stoy Hayward in Leeds, had been in negotiations with several interested parties after Bede was forced into administration on March 31.

He said: “We are absolutely delighted to complete the going concern sale of the businesses, which protects jobs in the region. We hope that the business can now move forward to fulfil its potential under new ownership.”

Trading in Bede shares was suspended in February after they plummeted to 0.64p each.

At the time, the company’s net debt was £1.1m and managers had been attempting to sell the company since last July.

Bede designs, sells and services X-ray equipment and also employs 13 staff in Denver, Colorado, in the US. The US operation has also been taken over by Jordan Valley and the jobs safeguarded.

Jordan Valley, which has been trading for more than 25 years, is based in Migdal Ha’Emek, Israel, and also has offices in Texas.

Before yesterday’s purchase of Bede, it already employed more than 100 scientists, engineers, marketing and support personnel.

Last October, it was named in the Deloitte Technology Fast 50 as one of the fastest-growing technology companies in Israel.

Isaac Mazor, chief executive of Jordan Valley, said: “The acquired technology will fit into our product line almost seamlessly and will strengthen Jordan Valley’s position as the market leader in X-ray metrology. With the consolidated X-ray metrology product line and expanded customer base, Jordan Valley becomes a comprehensive solution provider for current and future semiconductor process control and metrology challenges.”

Bede was founded in 1978 by Prof Brian Tanner and three colleagues from Durham University.

It was floated on the Alternative Investment Market in November 2000, but then endured several difficult years, including operating losses of £4.7m in 2006, and had clocked up £1.1m in debt.

In February, shares in the business were suspended after the firm said it had received a takeover offer “significantly” below its market value.