Turnaround investor Rcapital Partners has taken a major stake in Silverdell, the environmental support services group that acquired Sheffield-based EDS Group Holdings for around £18 million last year.
News of the deal has been followed by an announcement that PricewaterhouseCooper had been appointed trustee in bankruptcy following an application by the group’s Canadian subsidiary, EDS Decommissioning Canada.
Rcapital Partners has acquired the £16 million debt that Silverdell owed banker HSBC and has paid Silverdell £1 for the entire share capital of its subsidiaries, Redhill Analysts and RDS Asbestos Management Consultants UK, assuming a debt obligation of £5.5 million.
As a result of the deal, the remainder of the group owes Rcapital Partners £10.5 million, on the same terms as were applicable with HSBC.
Silverdell directors Stuart Doughty, John Matthews, Mark Watts and Mark Hazlewood have resigned from the Silverdell board, while Sean Nutley remains on the board and will share the investment risk and returns with Rcapital Partners.
Silverdell acquired Loxley-based EDS, an award-winning international plant dismantling and decommissioning specialist, in June 2012, amid predictions that new jobs could be created at the company.
EDS was ranked 59 in the 2012 edition of the Star Business Barber Harrison & Platt Top 100 Sheffield region companies and had collected its first Queen’s Award the previous year after quadrupling its overseas income over three years to £76 million.
Silverdell had its shares temporarily suspended on the Alternative Investment Market, at its own request in July.