Preston fluid power specialist grows portfolio following takeover

Preston-based R&G Fluid Power Group has completed a takeover of a Gloucester company, only three months since its own £100m takeover by London-based specialised technical products and services company Diploma.

R&G is one of the UK’s largest suppliers of aftermarket fluid power parts, components and assemblies, and has an annual turnover of around £75m.

Richard Davies, R&G Fluid Power Group MD, said: “Hydraproducts has an exceptional reputation for technical excellence, quality and value – the technical expertise of this Gloucester-based business adds a new dimension to R&G’s hydraulics division.”

Hydraproducts, which was founded 20 years ago by entrepreneur Ben Lee, manufactures hydraulic power packs.

After working for some of the major players in hydraulic engineering in Italy and in the UK, Ben established Hydraproducts having identified a gap in the market for modular hydraulic power units.

He grew Hydraproducts, capitalising on his experience of working in continental Europe. Over the years he took on and retained a number of talented and reliable staff who have remained loyal to the company.

The acquisition deal, for an undisclosed sum, was completed by Northampton corporate finance specialists, Watersheds.

Watersheds partner Yuri Fernandes said that, despite, the fact that Ben wished to exit his business relatively soon after sale, Watersheds was able to generate half a dozen different offers for the business, which was testament to the incredible strength of the business Ben had built.

“Ben started the business from nothing and has made it a great success, but felt that he needed to pass the baton on to a larger organisation to enable his staff to reach their full potential and allow the business to enter its next stage of growth,” said Yuri Fernandes.

“With the backing of R&G, Hydraproducts will be well positioned to expand and grow.”

Yuri added: “The hydraulic marketplace is quite niche, but we were able to source potential buyers completely confidentially, including some which Ben wouldn’t have thought to approach.

“Although Ben was initially concerned that some of R&G Group’s companies were potential competitors to Hydraproducts, we recognised that by acquiring the business they would gain a strong presence in the hydraulic power pack market – a key market they were lacking presence in, and establish a strong foundation to begin cross border trade into continental Europe.

“As well as recognising the huge potential for R&G, the group also valued the strength and competency of Ben’s existing management team. This gave them the confidence to be able to accommodate Ben’s wish for a clean exit after a sensible handover period. All R&G companies are locally managed by experienced staff who pride themselves on their extensive product knowledge and understanding of local markets and customer needs.”

Ben Lee said: “I am confident that, as part of the R&G Group, Hydraproducts and its staff will have the resources to continue the success story and take the business to a new level.”

Legal advisor for Hydraproducts was Thrings of Swindon. Forbes of Preston advised R&G.