Member Article

The Cylinder Service Centre Limited – Going Concern Sale to Hystat Systems

On 25 September 2020, Chris Petts and Stuart Preston of Grant Thornton UK LLP were appointed joint administrators of North East company The Cylinder Service Centre Limited (Cylinder).

Following their appointment, the joint administrators executed a sale of Cylinder Service Centre as a going concern to Yorkshire-based Hystat Systems, a leading design, manufacture, and repair specialist of heavy duty hydraulic and pneumatic cylinders, accumulators and rotary actuators.

The acquisition will ensure all 30 jobs will be retained and customer contracts and projects will continue to be serviced as normal.

Cylinder is a highly specialised hydraulic cylinder design, manufacturing and repair business headquartered in Washington, Tyne & Wear. Following the acquisition, the company will trade as HSL Cylinders and complement Hystat Systems’ current offering in the hydraulic cylinder space.

Ray Wadsworth, Chairman of Hystat Systems, which is headquartered at Slaithwaite, Huddersfield, said: “Hystat Systems is pleased to become involved with The Cylinder Service Centre. We are confident that our experience in the cylinder market combined with the skilled workforce and superb facility in Washington will enable us to further develop the company on the existing site.”

Administrator Chris Petts commented “We are very pleased to have completed a going concern sale of the business, which secures the continued employment of a skilled workforce in these challenging economic times, particularly for the oil and gas sector. Hystat Systems appears well placed to offer a platform from which the business can continue its development.”

The administrators were advised on the transaction by Kelly Jordan of Muckle in Newcastle. Hystat Systems were advised on the transaction by Eaton Smith in Huddersfield.

This was posted in Bdaily's Members' News section by Helena Young .