Pryme Group, the Dundee-headquartered integrated manufacturing firm, has acquired Hydratron for an undisclosed sum as part of its growth plans to achieve turnover of more than £40m by 2021.
CEO Angus Gray said the acquisition of the established business from Sheffield-based Pressure Technologies was the ‘perfect fit’ for Pryme and would provide comprehensive engineering services to clients across large parts of the UK as well as increase the group’s presence across the oil and gas, aerospace and defence sectors.
Hydratron is a leading supplier of high pressure and flow control equipment to the global oil and gas industry. It manufactures and supplies bespoke products worldwide, including high pressure air-driven liquid pumps, gas boosters and associated systems.
Located in Altrincham, near Manchester, the company was founded more than 35 years ago and has a comprehensive partner network in North America, the Middle East, Southeast Asia and Australia.
The newly-acquired business complements Pryme’s existing operations in Dundee, Ellon (Aberdeenshire), Morecambe and North Shields and will allow the business to increase service delivery times and lower overheads for manufacturing by avoiding sub-contracting.
Hydratron, which employs 30 people, will continue to trade as normal under its current name. The company recorded turnover of £3.9m for its September 2017 year-end.
Pryme will assist Hydratron in entering new sectors such as aerospace and defence as well as new segments of the oil and gas industry. Production synergies are expected to help grow the business by 15-20% over the next 12 months.
Angus Gray, CEO at Pryme Group, said: “We are delighted to have acquired a business with such a strong international brand and presence as Hydratron. It is a company that we all respect, with parts of the group having dealt with them previously through various oil and gas projects, and we look forward to strengthening these relationships and integrating key areas across the business.
“I would also like to pay tribute to the team at Simmons for their support in getting this deal across the line. We can now look forward to developing Hydratron into new markets, such as aerospace and defence, whilst the company’s existing supply chain will benefit from Pryme’s expertise and capability from design and fabrication to machining and testing.”
John Hayward, CEO at Pressure Technologies, said: “Hydratron is a great business working in a tough market sector. Whilst successful steps have been taken to re-align the business with its core markets and establish the foundations for growth as the oil market improves it needs to scale up quickly if it is to remain competitive.”
Following the acquisition, Pryme Group now employs 260 people and expects to increase turnover from £15.6m in March 2018 to more than £19.5m by the end of its current financial year.
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