Hamworthy swoops for AW FLow

YORKSHIRE-BASED valves business AW Flow Holdings has been bought by stock market quoted group Hamworthy in a deal worth £24m.

AW Flow, which is based in Gildersome, Leeds, employs 141 people and manufactures specialist valves for the oil and gas sector, made pre-tax profit of £4.6m on revenues of £20.2m in the year to October 31, 2010.

Hamworthy, based in Poole, Dorset, is a world leader in the design and manufacture of marine and offshore fluid handling systems and made operating profit of £13.8m on revenues of £290.5m in the year to the end of March 2011.

The group has paid £21.6m up front for AW Flow with a further £2.4m deferred over the next two years.

AW Flow includes the well-known brands of Shipham Valves, Leeds Valve, John Mills Valves and Robert Cort and Hamworthy said its ranges are “highly complementary” to its existing pump range and the acquired business will be merged with the group’s Pumps Systems business to form a new division, Hamworthy Flow Solutions.

Consolidated net assets for AW Floow at October 31, 2010 were £14.2m of which £9m was subsequently distributed by way of net dividend.

Commenting on the acquisition, Joe Oatley, chief executive of Hamworthy, said: “The acquisition expands Hamworthy’s position and scope in the oil and gas market, in particular for offshore applications, as well as access to the down-stream terminals and refinery markets.  AW Flow’s product and market expertise will complement Hamworthy’s financial, technical and global sales resources.”