A multi-million-pound deal has secured the future of two Gateshead factories following the collapse of a century-old business that left around 180 people out of work, saving the UK's only suspended-ceiling manufacturing facility from closure.

RFB Legal Senior Partner Deniz Oguzkanli (inset) advised Turkish manufacturer Prosista on its multi-million-pound acquisition of Zentia's Gateshead manufacturing facilities, saving the UK's only suspended-ceiling factory from closure.

UK law firm RFB Legal has advised Turkish ceiling manufacturer Prosista on its acquisition of Zentia's former factories and manufacturing assets, following the company's administration in June amid rising energy costs and falling sales.

Without the acquisition, the UK would have lost its only suspended-ceiling factory, ending decades of British exports and leaving the country reliant on imports.

The deal includes manufacturing premises, machinery, stock and intellectual property. Prosista has already begun recruiting former employees and plans to create job opportunities for more than 100 people at the site.

Zentia's collapse brought production at its two Gateshead factories to a halt, disrupting a North East manufacturing operation that had been producing ceiling products since 1948. The company was headquartered in Newcastle.

The acquisition was completed to a demanding deadline, with Zentia's administration requiring RFB Legal to coordinate negotiations involving multiple parties while addressing property and employment matters.

The transaction was led by RFB Legal Senior Partner Deniz Oguzkanli and Corporate Partner John Andrews, with Employment Law Partner Adam Pavey, Samuel Glasgow, Jasmine Azaei and Gauri Dalvi also advising on the acquisition.

Deniz said: “This is a welcome investment in British manufacturing and an opportunity to bring more jobs back to Gateshead, and it's encouraging to see an international manufacturer recognise the potential of these facilities and plan further investment in the area.

“Buying from administrators meant dealing with several parties, all with different interests, while making sure our client was protected from risks connected to the previous business.

“With so many different aspects to the deal, our teams needed to work closely together to make sure nothing was overlooked. Our priority was to protect our client's interests while getting the acquisition completed within a demanding timeframe.”

Prosista is one of Turkey's leading ceiling manufacturers, supplying domestic and international markets. The acquisition will enable the company to expand its product range using Zentia's existing production facilities.

Mehmet Lacin, Director at Prosista, said: “There's a great deal of history behind these factories, and we want to build on the skills and manufacturing experience developed in Gateshead over so many years rather than see them disappear.

“By combining our expertise in metal ceilings with the mineral ceiling and acoustic products made in Gateshead, we can develop new product ranges while investing in the facilities and creating more opportunities for local workers.”