Motor Industry Research Association (MIRA) sold in pre-pack

Written by companyrescuelondonadmin 3 April 2017

The latest reports reveal MIRA was sold in a pre-pack administration deal for £83.2 million to Japan-owned Horiba, one of the world’s largest manufacturers.

Now known as Horiba Mira, the company specialises in testing, research and engineering for the automotive industry.

Joint administrators from KPMG were appointed to MIRA’s headquarters in Warwickshire on the 14th July prior to the sale of the company. Around 500 jobs were saved in the transfer. 

A pre-pack deal was considered the best option for the business as its pension schemes (USS and MIRARBS) were in significant debt – to the tune of £150 million. The schemes had to be separated from the business in order to attract a buyer. Once a sale was underway, the net proceeds then paid towards the pension schemes.  

A KPMG report said, “Importantly, the terms of the sale included an obligation on the purchaser to adopt liability for all creditors of the business, with the exception of the pension schemes.”

The pre-pack terms also state all other creditors will be paid back in full.