It was announced today that Esh Group has acquired the business and assets of Stephen Easten Limited, the well-known and respected North East based construction company, for an undisclosed sum.

The 100 year old Company, with its famous ‘lion brand’ logo and distinctive red and black livery, has been a well recognised symbol of excellence throughout the Region and amongst the construction fraternity for over four generations.  The business has a strong reputation for high quality and sensitive restorative works to landmark historic and ecclesiastical properties and a long-standing, blue-chip commercial client base.

Based at Northumberland Business Park near Cramlington, Northumberland, the Company employs 105 people and has an annual turnover of around £12 million.  The business celebrates its Centenary this year and, in March, received a commendation from Companies House in recognition.  Having restructured in 2000, the business had been trading profitably; however, over-exposure to a particularly significant contract in the latter part of 2005 has led to the current difficulties.

The Company has appointed Gordon Goldie and Alan Kelly of Tait Walker Chartered Accountants as joint administrators.  The business and assets of the Company have been sold to Esh Group as a going concern.  

Brian Manning, Chief Executive of Esh Group, said;

‘This is a bitter-sweet day.  We have long admired the reputation and work of Stephen Easten Limited and it is sad that the business finds itself in these circumstances.  We are very pleased to have been able to strike a deal with the Administrators.  It is clear that the Directors have tried hard to resolve the problems, that they have a passion for the business and commitment to staff, clients and suppliers alike.  We are looking forward to integrating the business into our Group and, as businesses with shared passion, to working together for the next 100 years.’

Robin Purves, Managing Director of Stephen Easten Limited said;

‘It is with great sadness and regret that the Board has had to take steps to wind up the current business which has a proud history of serving the North East and beyond.  The decision was inevitable after a major contract with a key client reached an impasse.  I am personally relieved that a sale of the business to Esh Group has been agreed.  Over the next days we will be working hard to meet with customers in order to minimise any disruption to and ensure the success of ongoing contracts.’

Gordon Goldie, Corporate Recovery Partner at Tait Walker Chartered Accountants, commented;

‘It is always unfortunate when a Company of such reputation and standing has to call in Administrators – in this case particularly poignant being the Centenary trading year.  The deal reached with Esh Group is a tremendous outcome.  There appears to be an excellent fit with a business which is really going places.  The two major priorities have been to save as many jobs as possible and also to ensure that creditors receive the maximum return.’

The new company, Stephen Easten Building Limited, will become the twelfth subsidiary of the award-winning Esh Group; the largest indigenous construction company in the Region.