Sheffield manufacturer expands global reach following US acquisition

President Engineering Group Limited, a Sheffield-based manufacturer of precision engineered valves and related products for use in LNG (liquefied natural gas) and other industrial applications, has been acquired by Parker Hannifin Corporation, a US-based corporation specialising in motion and control technologies.

The transaction provides a full exit for YFM Equity Partners, who financed the MBO of the business from Flowgroup plc in 2010.

President Engineering has manufacturing facilities in Sheffield, with additional operations in Pittsburgh, Pennsylvania and Ahmedabad, India. The business generated approximately £19m of revenue in the latest financial year.

Mark Henley, managing director of President Engineering, said: “This is a great opportunity for both Parker and our business. 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.”

John Greco, vice president and president – Instrumentation Group, added: “The addition of PEGL provides product and manufacturing technologies and expanded systems capabilities along with solid brand names. This acquisition will strengthen Parker’s position in the LNG, Industrial Gas and Mining markets. We are excited about the opportunities to combine our organizations and extend more solutions to our customers.”

Mary Broadhead, Investment Director at YFM Equity Partners, also commented: “This is a perfect example of YFM helping to unlock the potential of a small regional business, through its international expansion. During the period of our investment, the business increased revenues by over 75%, driving an outstanding return for our investors. We enjoyed working with Mark and the team as they grew profits and exports. We wish them continued success in the future.”

The acquisition was advised by a full team of 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.

Christian Mayo, partner and head of corporate finance for KPMG in Yorkshire, said: “The completion of this acquisition has produced a fantastic result for the shareholders and provided a strategic UK asset for Parker. President Engineering represents another in a long line of successful Yorkshire-based engineering businesses making headlines on the global stage, and I am pleased to have worked with the team in introducing Parker to support the business through the next stage of its growth.”

Richard May, managing partner for DLA Piper in Sheffield, stated: “We acted on the President Engineering MBO in 2010 and it is great to have now helped the Sheffield based team and equity funder make a success of their hard work and investment. I am sure the business will thrive with Parker.”

Amanda Partland, Corporate Partner for Eversheds in Leeds, added: “Parker Hannifin is an important and longstanding client of Eversheds, who we have advised on many strategic acquisitions and disposals. This latest deal is a key acquisition for Parker which will enhance its position in flow control technologies.”

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