Two Gateshead factories that closed when their owner collapsed into administration with the loss of 170 jobs are set to reopen following a multimillion-pound deal. UK law firm RFB Legal advised Turkish ceiling manufacturer Prosista on the acquisition of Zentia's factories and manufacturing assets, following Zentia's administration in June amid rising energy costs and falling sales.
Historic Manufacturer Saved
Zentia, the UK's only suspended-ceiling plant, called in administrators at Interpath last June after 101 years of trading. The company, a former North East Business Award winner, employed scores of people across its two Gateshead factories, making suspended ceilings for customers across the UK, while also working with distributors, contractors, architects and interior designers.
Weeks later, documents filed by the administrators showed how they were in talks with a potential buyer for the business. Without Prosista's acquisition, the UK would have lost its only suspended-ceiling factory, ending decades of UK exports and leaving the country reliant on imports.
Deal Details and Job Creation
The deal includes manufacturing premises, machinery, stock and intellectual property. Prosista is already recruiting former workers and planning to create job opportunities for more than 100 people at the site. The transaction was completed against a demanding deadline, with Zentia's administration requiring RFB Legal to coordinate negotiations with multiple parties while addressing issues involving the property and remaining employees.
The transaction was led by RFB Legal Senior Partner Deniz Oguzkanli and Corporate Partner John Andrews, with Employment Law Partner Adam Pavey, Samuel Glasgow, Jasmine Azaei and Gauri Dalvi also advising on the acquisition.
Investment in Local Manufacturing
Mr Oguzkanli said: "This is a welcome investment in British manufacturing and an opportunity to bring more jobs back to Gateshead, and it's encouraging to see an international manufacturer recognise the potential of these facilities and plan further investment in the area.
"Buying from administrators meant dealing with several parties, all with different interests, while making sure our client was protected from risks connected to the previous business. With so many different aspects to the deal, our teams needed to work closely together to make sure nothing was overlooked. Our priority was to protect our client's interests while getting the acquisition completed within a demanding timeframe."
Prosista is one of Turkey's leading ceiling manufacturers, supplying products to domestic and international markets. The acquisition allows it to expand its product range using Zentia's existing production facilities.
Mehmet Lacin, director at Prosista, said: "There's a great deal of history behind these factories, and we want to build on the skills and manufacturing experience developed in Gateshead over so many years rather than see them disappear.
"By combining our expertise in metal ceilings with the mineral ceiling and acoustic products made in Gateshead, we can develop new product ranges while investing in the facilities and creating more opportunities for local workers."
