Saviour for Fodens
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FODENS were well on their way into American hands this week, as the company's receiver announced its acceptance of an offer from Seattle-based Paccar Inc.
According to receiver Cork Gully, it has received an acceptable offer from Paccar (Pacific Car Company) to buy the company as a going concern, subject to contract. Negotiations are now going ahead with a view to an early completion of the sale.
Paccar, which builds Kenworth and Peterbilt heavy duty lorries, is a worldwide multi-divisional company. It also manufacturers railway cars, surface and underground mining equipment, and winches.
It is maintaining a diplomatic silence until negotiations are due to be completed, probably early next month. No details of the price paid have yet been released, but Cork Gully was looking for between £30m and £40m, and turned down a £10m offer from the Midlands-based Richardson group.
The move comes as a relief to the 1900 employees who have remained at the Fodens works at Sandbach. The company has already made 630 employees redundant in an effort to contain costs.