A SHEFFIELD manufacturer has been bought by a £9bn-turnover American giant Parker Hannifin, five years after the business was the subject of an MBO.
President Engineering Group generated sales of £19m last year from making precision engineered valves and related products, and employs about 120 people across its factories in Sheffield and Ahmedabad, India, and its distribution facility in Pittsburgh, America.
YFM Equity Partners, which had a 20% stake in the business after financing the MBO, has exited the business.
The other shareholders, which were the management team of managing director Mark Henley, finance director Marie Cooper and operations director John Waddington, have all stepped down from the board.
“This is a great opportunity for both Parker and our business, said Mr Henley.
“Parker has the financial resources and scale to take advantage of the numerous opportunities in our markets, and I am confident that this is the right home to take President Engineering to the next level of global competition.”
President was formed in October 2010 in an MBO of the Conflow and Bestobell Valves businesses from Flow Group. It then added Bretby Gammatech in 2012, which increased its offer within the global mining market.
In its four full years of trading, its pre-tax profits have ranged from £1.6m to £2.2m.
The acquisition was advised by a full suite of local Yorkshire professional services firms, with Christian Mayo and Giles Taylor of KPMG and Richard May of DLA Piper providing financial and legal advice, respectively, for the shareholders of President Engineering and Amanda Partland of Eversheds advising Parker.
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