Acquisitive Flowtech splashes £3.5m in latest deal

West Lancashire-based technical fluid power products supplier Flowtech Fluidpower has bought a distributor of hydraulic equipment components for up to £3.5m.

The AIM-listed company has bought Hi-Power Limited and the business and certain assets of Hi-Power Hydraulics, which distribute hydraulic equipment components and systems design & build to the mobile and transport sectors.

Hi-Power, founded 40 years ago, employs in total 38 people across its sites in Cork, Dublin, Belfast and Manchester and has a turnover of around £7m.

It holds a number of long-term customer relationships across its Republic of Ireland and Northern Ireland operations and Flowtech said the acquisition will strengthen its Power Motion Control division and extend its position with European suppliers.

In Ireland, Hi-Power will operate as an independent sister company within the PMC division and will continue to be managed by the current Hi-Power executive management team who have been in place for a number of years.

The UK operation, Hi-Power Hydraulics, will become a trading division of Primary Fluid Power and will report to its managing director, Paul McGrady.

Sean Fennon, chief executive of Flowtech Fluidpower, said: “This acquisition represents a further strengthening of the group offering to the hydraulics marketplace, delivering a greater depth of technical expertise along with a strengthening of our core product set.

“We continue to work on a number of other opportunities which we fully expect, over the coming months, to reach positive conclusions on. As we have previously stated, our targeted approach ensures we can achieve both a concentration and enhancement to our product set which is, and will continue to be, core to our business model.”

In January, Flowtech acquired Shropshire company HTL for £2.65m in a deal it said would boost its power motion control division, which £5.2m turnover HTL is a specialist in.

Since then the £54m turnover company has raised £10m through a share placing to fund acquisitions like the Hi-Power deal.

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