Michelmores has advised Michco 2001 Ltd on its acquisition of the long-established bed manufacturer Relyon Ltd, out of administration.
Relyon, originally founded in 1858, has been acquired from the Administrators, PwC, by Michco 2001 Ltd, a new company set up by former Relyon Group Chief Executive Ian Topping, and other private investors. Michco 2001 Ltd will soon change its operating name to Relyon Beds Ltd.
Michco 2001 Ltd has also acquired the freehold property in Wellington, Somerset from which Relyon operates as well as the intellectual property associated with the Relyon and Dunlopillo (mattress) brand names.
The deal has preserved 280 jobs in the region and secures the future of an important British manufacturer.
Commenting on the acquisition, Ian Topping, Chairman of the new business, said: ‘I am delighted to have been able to lead the acquisition of Relyon which is a great UK manufacturer with a 150-year history of making high-quality beds in the West Country. Having formerly been Chief Executive of the Relyon Group from 1993-2010, I have real belief in the underlying strengths of Relyon and its people.
“As an independent business, I will be working closely with Alan Chapman, Managing Director, and his team as we focus on developing our excellent products and close customer relationships to grow the business significantly and with this create new jobs.’
The Michelmores team was led by Banking, Restructuring & Insolvency Partner Karen Williams, with support from the Firm’s Employment, Commercial, Corporate, and Real Estate teams.
Commenting on the deal, Karen said: “Relyon is a business of great importance to the South West region and has an impressive history of high-quality British manufacturing. We are very pleased to have supported the team on this deal and we look forward to seeing the Relyon brand continue to thrive.”
