Bolton hydraulics specialist acquired by Turkish-based group
Bolton-based Edbro Hydraulics has been acquired, for an undisclosed sum, by a Turkish group.
Orsan Automotive Limited, is a wholly owned subsidiary of Orsan Industries Incorporated, a £100m-turnover Turkish group with multiple locations in Turkey and Mexico, manufacturing component parts for the heavy duty vehicle (HDV) sector since 1972.
Edbro is one of Europe’s key manufacturers of hydraulic cylinders for the ‘on-road’ tipper truck market and other ‘off-road’ applications, employing 144 people at its production facilities.
It was acquired in May, 2021, by Enact, the SME platform of private equity investor Endless, from its then German parent company, JOST Werke AG.
Following last Friday’s (March 21) deal, Edbro CEO, Gordon Macdonald, said: “There are significant synergies between Orsan and Edbro.
“Our on-road telescopic tipping cylinders and supporting hydraulic systems will complement Orsan’s existing product portfolio and allow customers increased choice and improved supplier integration.”
He added: ”We would like to thank our previous shareholders Enact for their financial and strategic support to develop our product portfolio and invest in new machinery.”
Fikret Orman, owner of Orsan Industries, said: “We are delighted to welcome well known brand Edbro to the Orsan Group as the latest acquisition to support our growth strategy and the steps we are taking towards becoming a global player in the Heavy Duty Vehicle sector.”
Richard Harrison, Enact partner, said: “Orsan represent a fantastic strategic fit for Edbro and the company and its employees will benefit from being part of a larger group that can help it to further develop its commercial offering and penetrate new international markets.
“The management team have done a great job navigating the business through challenging macro-economic conditions during our ownership and we wish them all the best for the future.”
According to the last filed accounts for the business, in the financial year to 31 December 2023 the business recorded turnover of £26.3m, up slightly on the previous year.
The 2022 financial year was an exceptionally strong year for sales growth for Edbro Hydraulics, with revenues growing some 50% from £17.6m to £26.2m as the economy recovered from COVID.
But during 2023 the company saw electricity costs double and gas costs increase by five times their 2022 levels, so EBITDA fell from £1.2m in 2022 to £354,000 in 2023. Common with private equity businesses, the business recorded a statutory pre-tax loss for the year.
Enact was advised on the sale by FRP Corporate Finance (Alex Starling), Womble Bond Dickinson (James Cook and David Ridley) and Tax Advisory Partnership (Russ Cahill).
Orsan was advised by MHA Baker Tilly (Rob Dando and Chris Denning) and Dede Law.
