An established Brighouse company has been bought by a leading American manufacturer in a £72m deal.
Graco Inc, a leading manufacturer of fluid handling equipment has acquired the Alco Valves Group.
Established in 1977, Alco offers a portfolio of widely known brands, including Alco Hi-Tek, Alco Valves, Alco Sub-Tek and Alco Process.
Alco has developed global business relationships with oil and natural gas industry customers who are well known and recognised as leaders in their field.
“This is a terrific opportunity for Alco and our employees,” said Stuart Lomax, Alco President and owner. “Graco has the financial resources to invest in and grow the business.
“I am confident that this is the right move at the right time to take our company to the next level of global competition.”
Alco, which has a base in Birds Royd Lane, operates manufacturing facilities in both Manchester and Leeds. 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.
“Gaining additional exposure to the oil and natural gas industry is a logical extension for Graco and a strategically important initiative that will support our long-term sales and profit goals,” said Patrick J McHale, Graco President and CEO.
“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 and 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.”
Alco generated approximately £19 million of revenue in the last twelve month period.
The acquisition was an all cash transaction which closed for £72 million and is subject to normal post-closing purchase price adjustments.
Graco Inc supplies technology and expertise for the management of fluids and coatings in both industrial and commercial applications.
It designs, manufactures and markets systems and equipment to move, measure, control, dispense, and spray fluid and powder materials.