Flowtech acquires Merseyside rival
FLOWTECH Fluidpower has acquired Primary Fluid Holdings, a Merseyside hydraulics business, in a £9.8m deal.
It is Flowtech’s first deal since it was floated on the Alternative Investment Market by private equity house Gresham in May.
Skelmersdale-based Flowtech, a distributor of hydraulic and pneumatic products, said the deal would help increase its product range.
Primary Fluid had sales of £11.1m in the year to December 2013 and a pre-tax prodit of £1.1m. It will continue to operate from its existing facilities and the current management team will remain with the business.
Stephen Merrie, who has been with the business since 1987, will stay on as managing director and join Flowtech’s operational board. Flowtech did not say how many staff the business had, but suggested there could be cuts. “It is expected that some synergies will be made in the first full year of ownership,” it said.
Chief executive Sean Fennon said: “We have known this business for some time and the culture is similar to ours; we believe that this is a great opportunity to build on the strong foundation we have created to date and increase our product portfolio, principally by strengthening the Flowtech offering in Hydraulics, a market predicted to continue its exceptional growth momentum.”
