Tubing manufacturer expands oil & gas offering with major acquisition

A WARWICKSHIRE engineering business has expanded with the acquisition of specialist components firm.

Marla Tube Fittings, based in Alcester, is a leading supplier of tubing and related products to the oil & gas and heating & ventilation sectors.

The company, which employs 160 people, has acquired Steadfast Engineering Company. The terms of the deal have not been disclosed.

Steadfast, based in Hyde, near Manchester, is a leading manufacturer of pipeline components for critical applications. It delivers niche bolting products and engineering capability to the international oil & gas project market.

The firm has established itself as a successful British manufacturer, exporting goods across Europe and the Caspian Sea region. The business achieved a turnover of £17.9m in 2015, up from £14.5m the previous year.

Steadfast currently employs more than 90 staff and also has operations in Aberdeen where it services the North Sea repair and maintenance market. The deal will see the existing founders Ken and Andrea Sharp exit the business.
 
Manchester-based international investment bank Altium, which recently announced its merger with GCA Savvian, advised on the sale. The transaction was led by managing director Simon Lord and assistant director Adam Sivner, supported by associate Andrew Battersby.

The deal represents another successful transaction in the oil & gas sector for Altium and follows the £125m sale of Bifold to Rotork last year.
 
Andrea Sharp, co-founder of Steadfast, said: “Ken and I are incredibly proud of the business we have built over the past 40 years and believe that the business will continue to grow from strength to strength under Marla’s ownership. We would like to thank Altium for their fantastic work in getting this transaction over the line and we now look forward to our retirement greatly.”

Mr Sivner said: “We are delighted to have advised Steadfast on its sale to Marla. Despite the difficult market we were able to find the right buyer for the business, as Steadfast continued to trade well during a time of low oil and gas pricing.

“Marla is now in a great position to continue its international expansion as a leading manufacturer in the oil and gas industry.”

Legal advice to Steadfast was provided by BBS Law’s Martin Caller and Elaine Hackett.