Scott Technology buys Dunedin engineering firm DC Ross out of receivership
Scott Technology has bought Dunedin engineering firm DC Ross out of receivership and, separately, plans to expand its existing facilities in the Otago city.
The industrial robotics firm expects to pay less than $500,000 for the assets of DC Ross, which was tipped into receivership last September. Scott Technology intends to keep a number of the company's 12 staff and continue to service the engineering firm's customers.
"DC Ross operates a small engineering business known for producing high-quality fine blanking press parts," chairman Stuart McLauchlan and managing director Chris Hopkins said in a statement. "The main assets are metal blanking presses and metal tool-making machinery, similar to what Scott currently uses, along with the knowledge and skills of the engineering team."
At the same time, Dunedin-based Scott Technology is in the final stages of planning to extend its facilities, which it anticipates will double the available floor space and which it says is supported by the firm's plans to grow. The DC Ross deal was separate but complementary to the expansion plans, it said.
Last month, DC Ross's receiver Malcolm Hollis of PwC said in his second report on the administration that he hadn't received any bids for the business and had liquidators appointed by Fletcher Steel, which was owed about $610,000 as a third ranking secured creditor.
The engineering firm's first secured creditor was Bank of New Zealand owed $4.3 million, followed by Baird McConnon's Aorangi Laboratories with $13.8 million of outstanding debt.
After the failed sales process, Hollis said he had received interest from a potential buyer and was in negotiations.
Scott Technology shares rose 1.8 percent to $2.85, having gained 30 percent so far this year.