An industrial machinery manufacturer in Gloucestershire has been acquired by a North West firm.
Hydraproducts, which specialises in hydraulic power packs, has been bought by Preston-based R&G - which with a turnover of around £75m is one of the UK’s largest suppliers of aftermarket fluid power parts, components and assemblies.
Based at Tuffley Trading Estate in Gloucester, Hydraproducts was established by entrepreneur Ben Lee in 2002, after he previously worked for other hydraulic engineering firms, including in Italy.
Financial services firm Watersheds, which oversaw the deal, said Hydraproducts had attracted “half a dozen” different offers, underlining the “incredible strength” of the business within a “niche” marketplace. The value of the deal has not been disclosed.
Mr Lee said: “When I began thinking about passing the business on, I had no idea of what the company could be worth, how I should find and approach potential buyers, and how I could negotiate a relatively early exit.
“Watersheds did a tremendous job of sourcing a wide choice of offers, while maintaining total confidentiality in what is a very small world, and the final result far exceeded my initial expectations.
“I am confident that, as part of the R&G Group, Hydraproducts and its staff will have the resources to continue the success story and take the business to a new level.
Richard Davies, managing director of R&G Fluid Power Group, added: “Hydraproducts has an exceptional reputation for technical excellence, quality and value; the technical expertise of this Gloucester based business adds a new dimension to R&G’s hydraulics division.”
Watershed partner Yuri Fernandes said: “Although Ben was initially concerned that some of R & G Group’s companies were potential competitors to Hydraproducts, we recognised that by acquiring the business they would gain a strong presence in the hydraulic power pack market - a key market they were lacking presence in, and establish a strong foundation to begin cross border trade into continental Europe.”
Legal advisors for Hydraproducts were Thrings of Swindon; Forbes of Preston advised R&G.
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