Member Article

Reece Group acquire Wallsend engineering outfit

North East engineering force, the Reece Group, has acquired Wallsend-based Pipe Coil Technology, the third major purchase in 18 months.

Reece Group, which is the holding company for Pearson Engineering in Walker, Responsive Engineering in Gateshead and Velocity UK in Sunderland, will take charge of the coiling, packaging and handling equipment firm.

The acquisition will result in a group with combined turnover of £100m and 500 North East employees.

Reece Group chairman, John Reece, said: “This is another strategic acquisition for the Reece Group; it comes on the back of our acquisition of Velocity UK and Responsive Engineering last year and our recent purchase of the BAE Systems property on Scotswood Road.

“Pipe Coil Technology adds a third product company to our business, enabling us to explore another new market. The business has shown it can deliver world class engineering solutions and we are looking forward to working with the management team to grow the business.”

Phil Kite, Reece Group CEO responsible for acquisitions stated: “Our goal is to create a more broadly based engineering business which is less dependent on defence with strength in the oil and gas, construction and subsea markets.

“The acquisition of Velocity UK, Responsive Engineering and Pipe Coil Technology in the last 18 months highlights the progress made in delivering on our strategic plan. The acquisition of Pipe Coil Technology gives us another product business and we are excited by the opportunity this will create.”

Pipe Coil Technology Managing Director, Gordon Fiddes, who will remain with the business, said: “It was the ambition of Reece Group that made them attractive as a buyer for the company. From the start of negotiations it was clear they wanted to invest in the business for all the right reasons.

“We are looking forward to working with the Reece Group and taking the business forward, in particular in the export market, where Reece Group has had considerable experience and success.”

The Reece Group corporate advisors were UNW led by Steve Lant. Legal advisors were Bond Dickinson LLP led by Iain Pritty.

The Pipe Coil Technology legal advisors were Ward Hadaway led by Rob Thompson and Tom Pollard.

This was posted in Bdaily's Members' News section by Tom Keighley .