TWO of East Lancashire largest employers have been sold off in a £19 million deal.

Perseverance Mills of Padiham and Scapa Mouldings of Rishton, which together employ more than 500 people, have been sold to a management buy-in team by Scapa Group.

The two firms will be combined under the name of Padiham Group Limited in the deal backed by the Bank of Scotland and the venture capital group 3i.

Perseverance manufactures lightweight nylon for printer ribbons, parachute cloth and clothing fabrics at Albion Mill, Padiham.

Scapa Moulding manufactures expanded polystyrene mouldings used in packaging.

"This disposal confirms Scapa's strategy of concentrating on its clearly identifed core businesses," said Peter James, chief executive of Scapa's industrial materials division.

"These two companies were not within the strategic core and we are pleased to have identified a buy-in team, who will take these two businesses forward under the name of Padiham Group Limited.".

The two companies had operating profits of £2.9 million for the year ending March 31 1996.

No one from the new company was available for comment.

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