A niche Midland's aerospace and defence and industry supplier has been saved from administration by a management buy-out (MBO) in a job saving deal.

Tyseley based Hollow Extrusions (HE) has provided a wide range of forged, machined and assembly ready products to industry for over 50 years. Among other products, it is responsible for the housing of ejector seat technology supplied to all UK military aircraft.

The firm's customers include Komatsu, Oleo and the UK's leading defence supplier BAe Systems. Annual sales are approximately £3.5 million.

Peter Jackson, a former non executive director of HE, led the new management team and is joined by former factory manager Steve Walters, who now becomes Operations Director. Managing director of Diesel Marine International, Eric Brightmore has been appointed as a non-executive director.

Thanks to Peter Jackson's previous knowledge and experience on the board of HE, the MBO was completed in a short time and has seen 59 jobs saved at the firm's Tyseley plant.

The deal was financed with the help of a sales finance facility and short term advance to the value of £550,000, provided by Midlands based Liquidity Ltd.

Mr Jackson said: "We are excited at the prospect of running a business with a high standard of plant and equipment and a quality blue chip customer base.

"Strong cash controls are now in place and the future for this business will be built with a solid financial backing."

David Totney, chief executive of Liquidity Ltd commented: "We provided a sales finance facility which will ensure that HE has the finance to grow. We also stepped in to help with an advance against plant and equipment.

"Though we are still in the early stages as a sales finance business, we are seeing a number of situations where sales finance can back growing businesses and make deals happen."

Sales finance is a facility secured against outstanding invoices.

The Hollow Extrusions business, which hit cash flow troubles earlier this year, was sold to the MBO team by John Kelly, administrator at Begbies Traynor, who stated, "Liquidity's no-nonsense, flexible approach enabled the deal to go through with the least amount of delay."

Susheel Gupta of George Green Solicitors who advised the management team on the deal, commented: "I am delighted to have helped the management team secure Hollow Extrusion's future."