Kinetic Air Dryers buys Coomtech business from administration

Kinetic Air Dryers Ltd has acquired the business and assets of clean technology developer Coomtech Ltd from administration, preserving all jobs and the company’s technical expertise.

Established in 2011, Coomtech developed lower-energy drying technology intended to address inefficiencies in the processing of raw materials from mining activities.

The company faced high development costs, a reliance on external investment and irregular revenue from a small number of large contracts. Its funding position was further affected by reduced investor appetite as venture capital increasingly shifted toward artificial intelligence businesses.

Coomtech sought restructuring advice from PKF Smith Cooper at an early stage as the pressures on its working capital intensified. Dean Nelson and Emily Oliver of PKF Smith Cooper were formally appointed joint administrators on 5 June.

The sale to Kinetic Air Dryers preserves the company’s research and development programme and enables the purchaser to build on its existing technology and expertise.

Dean Nelson, head of Business Recovery & Restructuring at PKF Smith Cooper, said the transaction secured a future for the business, its employees and its technology, while providing a platform for further development.

Emma Taylor and Clare Foss of Browne Jacobson acted for the sellers. Sundip Mapara of Howes Percival advised Kinetic Air Dryers.