A Merseyside car parts firm that entered administration has been acquired by a company led by its former directors, who have pledged to recruit additional staff. However, not all employees have welcomed the news.
Sale Details
Knowsley-based Surface Transforms, which manufactured brakes for supercars, went into administration in April after losing its largest client, leaving dozens of workers unemployed. Administrators from Alvarez and Marsal Europe confirmed that the majority of the business and assets have been purchased by new entity CCST Limited in a £1.4 million deal. CCST's directors include Ian Cleminson and Dr Kevin Johnson, both former directors at Surface Transforms.
The acquired assets comprise equipment, contracts, intellectual property, and the right to use the Surface Transforms name. The new firm intends to resume production of ceramic brake discs and will be looking to employ workers in the area with the requisite skill set.
Employee Reactions
Numerous Surface Transforms employees lost their jobs when the business collapsed, but the ten remaining staff will now move to CCST under TUPE regulations. One former employee told the Liverpool Echo that when redundant workers learned of the sale, there was 'murder' and 'everyone was kicking off.' Staff revealed they had been encouraged to purchase Surface Transforms shares over the years, with those who did now facing losing their entire investment. The statement confirms there will be 'insufficient realisations to pay any return to shareholders.'
The former employee indicated they had no intention of returning, stating: 'If they'd asked me to go back in they know I'd have told them to shove it where the sun don't shine.'
Background and Future Plans
Surface Transforms revealed in March that it had lost a contract with General Motors that accounted for more than 80% of its revenue. Directors brought in advisers from Alvarez and Marsal as they fought to sell or rescue the business, with scores of employees losing their positions.
Ian Cleminson, chairman of CCST, said: 'Surface Transforms built an exceptional reputation for innovation and engineering excellence within the global automotive sector. We are pleased to secure the future of the business and through the investor group provide the further investment, operational support and additional skills required for the business to satisfy the clear demand for the product.'
The manufacturing facility in Liverpool will continue operating, with a focus on consistently fulfilling existing customer programmes, stabilising production, and supporting long-term commercial opportunities in the premium and high-performance automotive market.
Cleminson thanked advisors at Hill Dickinson and DSW, as well as Liverpool City Region Combined Authority, Knowsley Council, and Seybourne Estates for their work in securing the future of the business.
Administrator Comments
Michael Magnay, joint administrator, added: 'This transaction represents the best possible outcome for the business and its stakeholders. We are delighted to have completed a sale that enables the preservation of highly skilled jobs and maintains the future of this important UK manufacturing capability.'
The total value of the deal is £1.4 million, which has been paid in full. Those funds will cover administration costs and settle payments to creditors, though precise sums owed have yet to be confirmed. As part of the agreement, CCST has committed to paying £90,000 to finance giant Close Brothers for assets financed by Close. CCST also has six months to decide whether to buy a dynamometer owned by the original Surface Transforms held at a third-party site in Germany.
Combined Authority Response
In 2023, Surface Transforms was celebrated as a 'world class manufacturer' by Liverpool City Region Mayor Steve Rotheram, whose combined authority extended a £13.2 million loan to the firm to support growth and job creation. Responding to the sale, a Liverpool City Region Combined Authority spokesperson said: 'The Combined Authority notes the sale of Surface Transforms as a going concern and is pleased that some of the workforce will be retained under the deal. We believe this is the best possible outcome under challenging circumstances and have engaged fully to help secure a future for this innovative advanced manufacturing factory and its skilled workforce.'
'As custodians of public money, the Combined Authority is extremely diligent and careful when considering investments and enjoys an excellent record of repayment, often generating returns that are reinvested in the local economy, while driving business growth, job creation and regeneration. However, any investment comes with inherent risk. We will seek to recoup as much money as possible from the sale of the company.'
