Dovedale Foods Limited, a manufacturer of condiments and seasonings, was sold out of administration in a pre-pack deal to Ethical Blends Limited, incurring no jobs losses.
Having “encountered cash flow difficulties” and being unable to secure an increase in finance, the East Midlands based company entered administration on 25 October 2013.
Dean Nelson of Smith Cooper was appointed as administrator.
Michael Roome, director at Smith Cooper, said: “It was apparent that in order for the business to survive a purchaser needed to be sought to acquire the business and assets.
“We undertook an accelerated marketing process and an offer was forthcoming from Ethical Blends Limited, an independent third party, which would effectively ensure the continuity of the business as a going concern”.
Ethical Blends managing director, Peter Ascroft, said: “We continue to look for opportunities to complement our existing business and Dovedale is such a company, being well positioned in an expanding market sector.
“We were able to complete the process over a period of three days therefore causing minimal disruption. We are confident that with our additional support, the business will continue to grow and expand.”
Smith Cooper were assisted in finalising the deal by Paul Dodds, a partner at Else Solicitors.