MBO completed at industrial pumps business

An equity buy-out has completed at Rotherham-based Industrial Pumps Group (IPG) Ltd.

Company managing director, Dave Carley, and sales director, David Stacey, have taken full control of the business for the first time since they completed on a management buyout (MBO) in 2016.

It follows a period of growth and profitability for the company.

The duo initially took over the business from its previous owner in 2016 as part of a management buyout deal facilitated by a £500,000 investment from UKSE – an organisation which focuses on helping businesses in former steel areas with investments, loans and premises.

Since then, Carley and Stacey have led the team, and have implemented changes which have made the firm capable of capitalising on growth opportunities. It has moved from being a reseller of pumps to operating as a designer, servicer and supplier.

IPG now has framework agreements with a number of the major water companies and has again approached UKSE for a further loan to help the company grow further.

Under Carley and Stacey’s leadership, the company has increased its turnover by £5m, and its headcount by 23.

Carley said the business will continue to grow organically and create more jobs in the Rotherham area.

Stacey added: “We are extremely grateful for the success and growth we have experienced over the past year and especially thankful for Steve and the UKSE team for the support we have received over the years.

“The initial investment helped to facilitate the expansion of Industrial Pumps across our customer base and create new jobs which meant we were able to secure the company’s future here in Rotherham.

“Furthermore, exit discussions were fair and straightforward over two rounds to suit our cashflow, with no penalties.

“We believe we are a stronger and more valuable company for having worked with UKSE, and we remain committed to our original vision of continuing to grow, and to create further job opportunities.”

Steve Lyon, area manager at UKSE, said: “The sustained growth of the business is a testament to the hard work and commitment the directors have shown. We wish them the best of luck with their future growth ambitions.

“Despite the team exiting us as an equity partner, they have recently approached us for further loan investment to help them expand further and we have been happy to support them again.

“As with all of the returns we make from our investments we will seek to invest this money in other local companies.”