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Euromix set for takeover as big firms circle

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Exclusive: Lafarge and Hope Construction Materials are among the firms in talks to buy out Euromix Concrete, after it fell into administration last month. 

PwC administrator Zelf Hussain, who was appointed to Euromix Concrete on 20 December 2013, told Construction News that a deal to buy Euromix Concrete could be in place by the start of next week.

Euromix encountered difficulty after it experienced cashflow problems, Mr Hussain said. He added that there had been strong interest from firms looking to acquire the business.

The group had turnover of just over £30m and was profitable, but problems with cashflow coupled with the Christmas period put pressure on the group’s liquidity, according to Mr Hussain.

The Essex-based business has worked with firms including VolkerFitzpatrick and I.D Corcoran.

Asked why a number of firms had recently entered administration, now that the UK economy was finally picking up, Mr Hussain said “financial discipline” was needed coming out of a recession.

He added: “Going forward, the economy is getting better, trading is going well and companies are winning work. But they need to make sure that once they’ve won the work, they are thinking ‘do we have what is needed to deliver it’?”

Mr Hussain said it was much easier for larger medium-sized businesses that had adequate funding through parent companies or shareholders with “deep pockets”, to consolidate more easily and quickly.

Alaway sourced labour from its connected group Alaway Management Services. The other companies within the group remain active.

Mr Hussain was speaking after several firms entered administration this month, including Alaway Ltd in Scunthorpe, Mivan in Northern Ireland and DCT Civil Engineering in Oldham.

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