Flowtech celebrates solid year end with an acquisition

West Lancashire-based technical fluid power products supplier Flowtech Fluidpower has swooped for Shropshire company HTL for £2.65m.

The AIM-listed Skelmersdale firm says the acquisition will boost its power motion control (PMC) division which £5.2m turnover HTL is a specialist in.

HTL was established in 1973, and has been managed by the current ownership team since a management buyout in 2007.  

It currently employs 25 staff and distributes hydraulic equipment and components from its location in Ludlow.

HTL provides fluid power solutions predominantly to the mobile market segment and supplies some of the market leaders such as JCB, McConnell and Alamo.

Flowtech said the acquisition provides incremental revenue to the group that it could not previously address, strengthens its position with key global suppliers including Eaton, Walvoil and Casappa, and complements our previous acquisitions of Primary Fluid Power and Nelson Hydraulics.  
 
HTL will operate as an independent sister company within PMC.  Managing Director, Ian Teece and commercial director, Richard Salisbury, who have led the business for over 10 years will also join the group’s operational board.

The announcement of the deal was made at the same as a trading update on Flowtech’s performance to the year ended December 31 which should a 19.9% increase in revenue to £53.7m.

Because of gross margin contraction in the second half of the year, the board expects underlying pre-tax profits will be between £7m and £7.2m.

A statement from the company said: “Our business has shown resilience in a difficult market, with our most recent acquisitions beginning to deliver growth.  

“The board remains confident in the strategy, commercial opportunities and the prospects of the Group as a whole, and expects to deliver further solid growth over the coming years building on the resilient performance seen in 2016.”

Close