Yorkshire manufacturer acquired by US firm
YORKSHIRE’S Alco Valves Group has been acquired by US business Graco in a £72m deal.
Brighouse-based Alco Valves Group, which employs 105 people, is a manufacturer of high pressure valves used in oil and natural gas and other industrial processes.
Established in 1977, Alco has a portfolio of brands, including Alco Hi-Tek, Alco Valves, Alco Sub-Tek, and Alco Process.
Alco has manufacturing facilities in Manchester, too, and also has warehousing and sales operations in Houston, Texas, Toronto, Canada, and Singapore. The newly acquired business will maintain its manufacturing and engineering base in Brighouse.
Stuart Lomax, Alco president and owner, said: “This is a terrific opportunity for Alco and our employees. “Graco has the financial resources to invest in and grow the business, and I am confident that this is the right move at the right time to take our company to the next level of global competition.”
KPMG’s corporate finance team in Leeds advised Alco Valves Group and its shareholders on the sale of the business to manufacturer of fluid handling equipment NYSE-listed Graco. The team was led by partner Christian Mayo and supported by Richard Stark and Charlie Gray.
In the last 12 months, Alco reported £19m of revenue and approximately £6m of EBITDA. The acquisition was an all cash transaction and is subject to normal post-closing purchase price adjustments.
Patrick McHale, Graco president and CEO, said: “Alco manufactures a comprehensive range of technically advanced high integrity valve products, a strong fit with Graco’s core competencies of designing and manufacturing advanced flow control technologies. The oil and natural gas industry’s growth trends are positive and we believe that enhancing our position in this space will pave the way for future growth opportunities.”
Christian Mayo, partner and head of corporate finance at KPMG in Yorkshire, said: “Advanced manufacturing businesses in the North of England are increasingly attracting the interest of international trade buyers. Firms like Alco Valves represent the cutting edge of British engineering, with its management team boasting a wealth of skills and experience gained from operating in harsh conditions worldwide.”
