Transaction will save 559 jobs in Stoneywood, Chartham and Basingstoke.
After months of search for a new owner the joint administrators of Arjowiggins Fine Papers Limited and Arjowiggins Chartham Limited have sold the businesses and assets of both companies to subsidiaries of Creative Paper Holdings Limited, a new venture formed by a management buyout team, for an undisclosed sum. FRP Advisory says that all staff is being transferred with immediate effect.
Arjowiggins Fine Papers Limited operated the Stoneywood fine paper mill in Aberdeen and an administration centre in Basingstoke. Arjowiggins Chartham Limited operated the Chartham mill in Chartham, Kent, which has manufactured translucent papers. Funding for the deal has been provided through investment by the management team, lending facilities, and loan and equity finance from Scottish Enterprise.
In June this year, the administrators of FRP Advisory had ended negotiations with a prospective preferred buyer without a result, and started fresh talks with senior employees on a management buyout.
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