More than 20 jobs at a Bradford power equipment supplier have been saved after the firm was bought out of administration.

The business and assets of Low Moor-based TM Newburn Group Limited has been acquired by the Dewsbury-based specialist power supply firm, Progress Group.

The acquisition of TM Newburn which supplies and rents diesel generators to a national client base, will add £3millon to Progress Group’s turnover. The deal has saved the jobs of most of the workforce and is designed to give the business, to be known as Newburn Power Rental Limited, a secure future as part of a larger group.

Founded in 1956, Progress Group has a turnover of £22m. It sells, rents and installs generators and emergency power equipment to industrial and commercial clients across Europe and has grown into the UK’s leading dealer of FG Wilson diesel generating sets.

TM Newburn entered administration on January 12. Andrew Walls, of Ethos Corporate Finance, quickly put together the deal which saw Progress Group acquire TM Newburn for an undisclosed six-figure sum, backed by existing funding facilities with HSBC. Other advisers included Ryan Millmore, of law firm Clarion, who advised administrators KPMG on the transaction.

Mark Henstock, Progress Group managing director, said: “This is a fantastic outcome for all parties. It secures the jobs and future of a great Yorkshire business with a fantastic workforce and loyal customer base which has been trading for more than 20 years and has built a strong reputation, but struggled last year. This deal draws a line under the company’s recent difficult times and allows the business to build again from a stable, well funded foundation.

“The acquisition is also a great opportunity for Progress Group to grow, complementing our existing business and enabling us to move into different specialist sectors such as providing power to the leisure industry for outdoor events.”

Andrew Walls, of Ethos Corporate Finance, said: “The successful completion of this deal demonstrates that there are still opportunities for strong companies to expand, despite difficult trading conditions. We look forward to continuing to identify suitable opportunities for Progress Group as it seeks further acquisitions that will allow it to continue to grow its geographic reach and expand its services further.”