Ambitious Union on acquisition trail
A NEW force in the global colour and pigments market is evolving in the North West.
Union Colours, a specialist organic pigments producer, is on the hunt for opportunities worldwide as part of plans to more than double turnover..
Its latest acquisition has seen the firm buy the technical centre of former rival European Colour, which went out of business in April. The deal, brokered by corporate financiers Ford Campbell, will lead to Union moving its headquarters from Stalybridge to Stockport.
The technical centre will enhance Union Colours’ ability to bring new products to market as well ensure quality and consistency meet the demands of its European and global customer base.
Union Colours was established in 2004 by former managers and directors from European Colour.
Operations director and co-founder Phillip Myles said: “We have created a new model with Union and are looking for opportunities internationally, so Ford Campbell has a big role to play in our future development.
“We already have operations in South Africa and China, and we are focused on taking part in further consolidation in the market place. We are clear about where we are going and what we are building.”
Mr Myles said a partnership with Longyou Chemicals, the world’s largest pigment’s producer was fundamental to Union’s business model, not only as its manufacturing partner, but in helping fund acquisitions, such as that of the technical centre.
“We have brought new product lines and more technical products to them and have given them their own ranges too, because in this market you need to have control of your destiny.”
He said the link with Longyou was proving a “win-win” for all parties with Union targeting opportunities in developing new technical products and the Chinese company focusing on manufacturing.
He added: To survive in the colour industry you need a competitive cost base, significant development capabilities and a first class technical sales network. The incredible growth of Union Colours in Europe has been based upon these fundamentals.
“However, for long term sustainability we need a substantial global infrastructure along these same lines. We are working hard to build this infrastructure, supported by organic sales growth, but ultimately acquisition is key.”
Anthony Richardson, director at Ford Campbell who advised Union Colours on the transaction and is working with the group to identifying further acquisitions said: “There are a number of good acquisition opportunities out there and we will look at all strategic targets and work in partnership with the management team to help them fulfil their growth plans which, in turn, will boost trade and employment in the North West.”
