Insider Media Limited

Derby-based structural steel company S Robinson & Sons has completed an investment transaction to secure its future and save jobs. The engineering company, which employs 229 people in the city, has been sold to turnaround investor RCapital.

The fee of the acquisition was not disclosed.

Under the deal, managing director John Robinson will retire and current financial director Mike Newton will take over the role.

The company board will be led by non-executive chairman Matt Swan, the former managing director of construction company Alfred McAlpine.

Incoming managing director Mike Newton said: “The past two years have been extremely tough for the construction industry with unprecedented challenging market conditions and we have seen many of our competitors in distress.

“We are therefore not alone in suffering from the effects of the dip in the construction industry which has led to a dramatic downturn in demand for steel structures nationwide 1.4 million tonnes output in 2008 to 700,000 tonnes this year, coupled with a consistent increase in the price of steel.”

Robinson’s turnover fell during 2009 but stabilised in 2010. The company brought in industry adviser PricewaterhouseCoopers in August to undertake a strategic review of the business.

Retiring managing director John Robinson, whose father Sidney set up the business, said: “The involvement of RCapital is a positive move which will ensure that the Robinson name continues and the brand values and heritage that we have built up will grow and thrive.

“I am delighted that this local company will remain at the forefront of the industry and Matt Swan will be a huge support to the excellent management team that will take the business forward on a secure and sound footing.”