Multi-million pound acquisition for Flowtech as first half revenues rise 25%
West Lancashire-based technical fluid power products supplier Flowtech Fluidpower’s first half revenue have risen 25% while the group also announced it has boosted its process division through the acquisition of Orange County (OCL) in a £12.2m deal.
The AIM-listed company has swooped for OCL, a UK supplier and distributor of products for the storage and movement of fuels, liquids and gases.
OCL was founded in 1994 and employs in 18 staff at its site in Spennymoor, County Durham. It will operate as an independent sister company within the Flowtech Group and will continue to be managed by the current executive management team.
For the year ended December 31 2016, OCL achieved sales of £4.1m producing EBIT of £1m.
The deal marks the third acquisition this year for Flowtech.
The group acquired Hydraulics & Transmissions (HTL) in January and last month it bought Hi-Power, a distributor of hydraulic components and systems design.
Sean Fennon, CEO Flowtech Fluidpower, said: “OCL is the third acquisition we have made this year and we are delighted to expand our knowledge base, add complementary technical products and skilled engineers to the group’s already robust customer offering. We take this opportunity to welcome all new colleagues to the group and see this momentum as an exciting opportunity for everyone. We remain committed to our strategic objective of building a focused Fluid Power Group that serves a wide number of industry sectors.”
Meanwhile, Flowtech said group revenue for the six months ended June 30 increased to £34.1m from £27.3m the previous year, due to a contribution from its subsidiaries.
Flowtech said: “The acquisition and product pipeline remains strong and continues to develop; we have several more opportunities that will add value and enhance our current brand portfolio and offering and, we are confident that we will conclude a number of these transactions over the coming months.
“The group’s current underlying performance will deliver another year of solid progress. As a business, we are confident in our strategy, commercial opportunities and the prospects of the group and, the business remains on track to meet current market expectations for the year ending 31 December 2017.”