Consulting

FRPs Restructuring Advisory team executed an accelerated sales process for Formula Plastics, an automotive plastics manufacturer, in response to significant challenges posed by the automotive sector. Founded in 1996, Formula Plastics specializes in high tolerance precision components through plastic injection moulding, primarily serving the automotive industry. The company faced severe cash flow issues exacerbated by a postponed main contract and broader market uncertainties, particularly in electric vehicle production, which accounted for 90% of its projects. The director had previously attempted to strengthen cash flow through personal loans and an unsuccessful share sale, but the delay in contract commencement left the company unable to sustain operations. Upon being instructed by the director, FRPs team, led by Partner Allan Kelly and Director Shaun Hudson, initiated a confidential and accelerated marketing process to explore the sale of the companys business and assets. They implemented a streamlined approach to maximize interest and secure a deal within one month. The team engaged with over 700 potential buyers and negotiated with interested parties, all while managing critical payments to maintain operations and ensure that wages were paid to employees. The outcome of FRPs efforts was the successful sale of Formula Plastics to Formula Components Limited, which preserved 34 jobs and ensured continuity of operations with minimal disruption to ongoing projects. This sale not only safeguarded local employment but also maintained supplier relationships and reinforced resilience within the manufacturing sector. The successful transaction allowed Formula Plastics to continue trading under new ownership, thereby securing its nearly 30-year legacy of quality and skilled craftsmanship in the industry.