18 November 2019, Burton upon Trent, UK Doncasters Group today announced the completion of the disposal of its UK based fabrications and Blaenavon forgings businesses to Arlington Capital Partners, as well as a new leadership structure to support both the ongoing business transformation plan and the progression of its financial restructuring negotiations, which are at an advanced stage.
As part of the Doncasters’ strategy to simplify and streamline its activities, Doncasters has today sold to Arlington Capital Partners the forging business based in Blaenavon; and the fabrications business, comprising the Doncasters’ Bramah site in Sheffield and the Sentinel Works site in Shrewsbury. These businesses will be acquired by Arlington Capital Partners in two separate transactions for an undisclosed amount.
These transactions follow on from the disposal of Doncasters’ Settas facility in Belgium, on 30 September 2019, with several smaller disposals also planned later in 2019.
Alongside these completed and proposed transactions, Doncasters has also launched a new operating model to facilitate the ongoing business simplification and transformation of its core activities. This new operating model will see Doncasters’ core precision castings and superalloys facilities organised into two geographic divisions under the leadership of two Managing Directors, Jason Mays and Simon Ward in USA and Europe, respectively. This structure will create a more agile and efficient operational organisation, alongside devolved commercial responsibility.
Doncasters’ Trucast business will remain a separate division, given the integration of its USA and UK operations and will remain under the leadership of Managing Director, Chris Pritchard.
In order to allow the senior management team to focus on this operational transformation, Doncasters has made two interim appointments to its Board. As of 18 November, Neil Robson will join as Chief Performance Officer and Michael Thomas will join as Chief Restructuring Officer. On a day to day basis they will work with Jas Sahota, Chief Executive Officer of Doncasters, until the completion of the financial restructuring. Negotiations with Doncasters’ lenders are at an advanced stage and the Group expects a successful implementation to be completed towards the end of Q1 2020.
Commenting on the announcements, Jas Sahota said: “Today is a major milestone towards our goal of creating a simpler group, with an unrelenting focus on the delivery of its core precision castings and superalloys expertise under the leadership of Simon Ward, Jason Mays and Chris Pritchard. We are pleased to have found a buyer who has a deep understanding and potential of our forgings and fabrications businesses. Finally, the Board looks forward to working with Neil and Michael, as their experience will prove invaluable as we move closer to finalising and implementing our balance sheet restructuring in a structured manner.”