Saietta Group and Saietta Sunderland Plant - Case Update

Lucy Winterbourne and Daniel Hurd of EY, the joint administrators of Saietta Group and Saietta Sunderland Plant, have secured a deal for the company after a solvent solution could not be reached.

Saietta Group’s primary activity was the research, development and design of complete powertrains for electric vehicles, while Saietta Sunderland Plant manufactured and supplied electric motors. The companies traded from leased premises located in Northamptonshire, Oxfordshire and Tyne and Wear, and collectively employed approximately 87 staff just prior to the administration.

Saietta Group was admitted to trade on AIM in July 2021, following which it diversified and invested in R&D. Further funding was required for this scale up period, and EY was initially engaged in November 2023 to assess the companies’ financial position and liquidity concerns.

The company launched an equity raise in late November which ultimately secured £6.5 million, which was expected to provide sufficient headroom for trade through to the end of March 2024. However, an anticipated contract with a key customer fell through and other customer contracts were materially postponed, putting further pressure on liquidity.

Initially, EY conducted a discreet marketing process limited to six parties, following guidance in respect of the AIM rules. However, by late February 2024, with no deal on the table, the directors of Saietta Group decided to open the process to the wider market. EY then approached more than 70 parties to gauge interest in acquiring the group's business. However, by early March 2024, there were still no viable offers and the board resolved to put the companies into administration.

The joint administrators continued the sale process following their appointment and ultimately received two offers by the 21 March bid deadline. On 28 March, the business and assets of Saietta Group were sold to Exedy Clutch Europe for £2.46 million. Remaining Saietta Group employees transferred to the purchaser under TUPE regulations.

The joint administrators have been assisted by Fieldfisher, AON and Hilco. Their proposals can be found HERE.