The Celloglas trade finishing business has been acquired from administrator RSM UK Restructuring Advisory by a team of three – two from the former management team joined by Glasgow entrepreneur Dara Changizi.
The deal covers the three Celloglas sites and its Mirriboard business and ensures the continuation of 74 jobs.
Changizi had previously stepped in to rescue Glasgow trade finisher ACA, helping to pivot that business to packaging through investment in machines for nested boxes for the hospitality sector, folder gluers, foiling and die cutting as well creating BRCGS clean room conditions.
This is not the Celloglas forte. It specialises in lamination, varnishes and coatings and foiling for magazine, book and greetings card publishers, though it produces packaging work with foiling, varnishing and four folds gluer lines over its three sites. Unlike ACA, none has the BRCGS certification that is needed for mainstream packaging.
Changizi says: “I see strong synergies for our respective companies moving forward. By working together, we become a stronger and more sustainable operation with reduced overheads, a broader spread of services and expertise to support customers.”
ACA has extensive block and die making capacity for both brass and magnesium dies in Glasgow, and this provides an immediate opportunity to retain revenue within the group. ACA has other specialist services that it has developed to meets the needs of the market in Scotland and north east of England.
ACA has been trying to push further south, but despite having a customer in Devon, has had limited success. With the addition of the three Celloglas this changes overnight.
ACA has access to a nationwide customer base served through Celloglas. This has sites in Leeds, Leicester and Theale near Reading, its main office. Staff at the site received outlines of the new strategy in Friday last week. There are no plans to lose any of the 74 staff employed by Celloglas.
“It’s early days, and synergy is definitely possible,” says Changizi. “It’s about anything that can save costs, drive integration, synergies and work between the businesses.”
Celloglas had survived the pandemic but not without sustaining a loss of income and taking on additional loans. Richard Pinkney, managing director at the time and one of the investors in the new business, says: “The losses sustained and the borrowings raised just to get the business through the pandemic, followed by a tripling of energy costs in late 2023 and a hike in the cost of living, put Celloglas in an impossible position. The team tried everything to trade through this period and to recover.
“We reduced headcount by 20% during Covid, sold surplus plant and attempted to refinance the business. However, once it became clear that refinancing was not a viable option and our bank could offer no further support, we had no choice but to engage RSM and look for new investors.”
The third investor is also from the old Celloglas, Ian Fergusson, who says: “Specialist trade finishing companies are still needed and by adapting and offering the widest range of services and more ecological solution we believe our future now look very bright.”
