Member Article

Brighouse industrial supplier Alco Valves bought by US firm for £72 million

Brighouse-based Alco Valves Group, manufacturer of high quality, high pressure valves used in Oil & Natural Gas, and other industrial processes has been acuired by US firm Graco Inc. a manufacturer of fluid handling equipment.

The acquisition was an all cash transaction which closed for £72 million.

Alco operates manufacturing facilities in both Manchester and Leeds, U.K. In addition, it has warehousing and sales operations in Houston, Texas, Toronto, Canada, and Singapore. The newly acquired business will maintain its manufacturing and engineering base in the United Kingdom.

Alco offers a portfolio of brands, including Alco Hi-Tek, Alco Valves, Alco Sub-Tek, and Alco Process. Alco has developed global business relationships with oil & natural gas industry customers who are well known and recognized as leaders in their space.

Alco generated approximately £19 million of revenue and approximately £6 million of EBITDA in the most recent trailing twelve months.

Patrick J. McHale, Graco president and CEO said: “Gaining additional exposure to the Oil & Natural Gas industry is a logical extension for Graco and a strategically important initiative that will support our long-term sales and profit goals.

“Alco manufactures a comprehensive range of technically advanced high integrity valve products, a strong fit with Graco’s core competencies of designing and manufacturing advanced flow control technologies.

“The Oil & Natural Gas industry’s growth trends are positive and we believe that enhancing our position in this space will pave the way for future growth opportunities.”

Stuart Lomax, Alco President and owner said: “This is a terrific opportunity for Alco and our employees. Graco has the financial resources to invest in and grow the business, and I am confident that this is the right move at the right time to take our company to the next level of global competition.”

KPMG’s corporate finance team in Leeds has advised Brighouse-based Alco Valves Group and its shareholders on the sale of the business to NYSE-listed manufacturer Graco. The team was led by partner Christian Mayo and supported by Richard Stark and Charlie Gray.

Christian Mayo, partner and head of corporate finance at KPMG in Yorkshire, said: “Advanced manufacturing businesses in the North of England are increasingly attracting the interest of international trade buyers.

“Firms like Alco Valves represent the cutting edge of British engineering, with its management team boasting a wealth of skills and experience gained from operating in harsh conditions worldwide.”

This was posted in Bdaily's Members' News section by Clare Burnett .