Will Wright and Mark Orton of KPMG were today appointed joint administrators to companies which make up the AEA Technology Group - the energy, water, waste, air quality and environmental consultancy business. On appointment the administrators sold certain of the business and assets of AEA Technology Plc, the UK operating company, to a subsidiary of Ricardo plc, a leading engineering consultancy, securing 390 jobs based predominantly in Oxfordshire, London, Risley and Glengarnock. The administrators also sold the shares of Eastern Research Group Inc, the US trading subsidiary, to NEK Acquisition LLC, a new company set up by one of the company’s former founders, securing 374 jobs.
Will Wright, administrator of AEA Technology Plc and restructuring partner at KPMG, commented: “The UK business fitted the ‘pension zombie’ bill as, despite its operational profitability, its pension scheme liability dwarfed revenues. Unable to sustain its pension liability, the company faced a funding crisis which necessitated the appointment of administrators. The company’s directors undertook comprehensive marketing of the operating businesses and there was a huge amount of interest with over 100 interested parties making contact. We are pleased that we have been able to secure new owners for these businesses, securing 764 jobs.”
Following today’s transactions the administrators are now working on selling the US subsidiary Project Performance Corporation Inc, a technology business which is not in any form of insolvency procedure and is trading normally. The administrators will provide further updates on the progress of this sales process.
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For further information please contact:
Sorrelle Cooper, Senior PR manager, KPMG
T: +44 20 7694 8527
M: +44 7932 078218
Zoe Sheppard, PR manager, KPMG
T: +44 117 905 4337
M: +44 7770 737994
KPMG Press Office: 020 7694 8773
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.