Investment firm Svella has agreed a deal to acquire Carlisle-based contractor Cubby Construction.
Family-run Cubby has been operating since 1968 but it had recently experienced difficulties, its director revealed.
The Cumbria News & Star quoted director Tommy Cubby as saying the firm had suffered financial issues when working on and subsequently leaving Galliford Try’s Carlisle Southern Link Road project last year.
It also reported that damage to the roof of the Sands Centre in Carlisle during Storm Eowyn in January had compounded the contractor’s problems.
In a statement, Svella said it was “targeting completion of the solvent acquisition of Cubby Construction Ltd by the end of June.
“This development represents a highly positive outcome for customers, employees and suppliers alike.
“The acquisition will ensure continuity of operations for Cubby Construction and provide the investment necessary to support the long-term growth and success of the business.”
Cubby’s accounts for the year to 31 May 2024 are overdue, according to Companies House.
The firm’s most recent accounts showed revenue of £24m for the year to 31 May 2023, up from £20.8m the year before.
But its pre-tax profit decreased from £630,000 to £582,000, and directors said the firm had experienced “a difficult few years” due to the Covid pandemic.
The contractor employed a monthly average of 157 staff. It had an annual wage bill of £5.6m and had paid out £194,900 in dividends.
It had a short-term repayable overdraft worth £403,400, but no long-term loans.
Svella, which is chaired by former Stobart chief executive Andrew Tinkler (pictured), was set up in 2018.
Since that time it has acquired the plant hire and transport divisions of NMCN and Aberla Utilities.
NMCN was a £400m-turnover utilities contractor that went into administration in October 2021 with Svella as a secured creditor.
Cumbria-based Svella targets distressed and underperforming businesses, particularly in civil engineering, construction, energy, infrastructure, logistics and transport.
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Nicola Harley