Barrett Steel buys majority of Aartee Bright Bar

UK steel service centre Barrett Steel has acquired the majority of Aartee Bright Bar and Aartee Bright Bar Property, administrators Alvarez & Marsal said today.

Barrett has acquired the Bright Bar distribution business and the Willenhall site, as well as Aartee Bright Bar Property's freehold and leasehold interests at the site. The hot-rolling business of Aartee Bright Bar Ltd, located in Dudley in the West Midlands, is not included in the sale and will be closed, leading to 45 redundancies.

The company paid £13mn for the entities, which supply engineering-grade steel bars to clients in the UK and globally.

GFG Alliance, which encompasses Liberty Steel, had been trying to acquire the Aartee Bright Bar business. It purchased Aartee Group Pte on 17 February and tried unsuccessfully to contest the administration of Aartee Bright Bar.

Alvarez & Marsal has since filed a winding up petition against Aartee Steel Group, which owes Bright Bar more than £8mn. At a hearing on 24 March, a judge said the business would be put into compulsory liquidation.

By Colin Richardson