Wed, 11 Sep 2024 | BUSINESS SALE
Technikraft, a manufacturing business based in Goole, has acquired a majority stake in West Yorkshire private-label metal working fluids provider Delta Fluid Technology. Technikraft is backed by “corporate compounder” PHD Industrial Holdings.
Delta Fluid Technology was founded in 2012 and employs a team of 13 staff, generating turnover of approximately £5 million. The acquisition will enable co-founder Andrew Fletcher to realise his investment in the business, while remaining with the firm as a director and consultant.
Following the takeover, Delta Fluid Technology will also continue to operate from its existing site at Sherburn-in-Elmet and remain under the leadership of current Managing Director Pat Flanagan.
Technikraft, which was founded in 1987, formulates and manufactures products for leading brands in sectors including automotive, handcare, cycling and household and industrial cleaning.
In 2018, the company received investment from PHD Industrial Holdings, a corporate compounder that backs industrial owner-managed businesses that are seen as having untapped, long-term growth potential.
Unlike private equity firms, corporate compounders such as PHD Industrial Holdings often focus on “unfashionable” sectors and don’t require frequent exits in order to generate returns for investors.
Since receiving the investment from PHD, Technikraft has increased its turnover from £6 million to more than £10 million, while expanding its team through key hires in operations, procurement and sales. The company is one of six trading businesses in the PHD portfolio, which has a combined turnover of more than £65 million.
Technikraft Managing Director James Clews, who took over leadership of the business following the retirement of its founders last year, said the acquisition was “a pivotal moment for both businesses and will make us a stronger force in the market.”
He continued: “Our mission is to use chemistry to power other companies’ brands. By working in partnership with Delta, we can offer customers a wider product range and enhanced capabilities, enabling them to simplify their supply chains."
“Both businesses will also benefit from numerous synergies and be able to leverage our collective experience and routes to market. We’re looking forward to working with the highly skilled team at Delta as we continue to power our customers’ brands and pursue further growth.”
PHD Industrial Holdings Director Philip Price commented: “PHD’s investment model focuses on enabling traditional businesses to achieve long-term, sustainable growth and, as Technikraft shows, it provides a genuine alternative to a trade sale for owners seeking an exit.”
“We work with owners to help plan their succession while also investing in the business to prepare it for future growth. We are confident that the Delta acquisition is just the first of many strategic moves for Technikraft.”
Find out more about developing trends in manufacturing M&A
An opportunity has arisen to acquire a metal fabrication and installation company based in the East of England. The company benefits from a wealth of experience and has built a solid reputation throughout its 14-year trading history.
An opportunity has arisen to purchase a large-scale manufacturer of bespoke timber doors, fire doors and windows. With an impressive trading record this company caters to a large and diverse UK client base including local authorities, contractors, ma...
Opportunity to purchase a leading UK manufacturer of pressure relief equipment. The company’s commitment to standards of product quality and service has ensured a loyal international customer base across the UK, Europe and USA. Benefitting from 20 ye...
18
|
Feb
|
UK administrations update: February 11 – 18 | ADMINISTRATION
Since our last update, the following businesses have been co...
17
|
Feb
|
PE-backed Solita buys digital group PUBLIC | BUSINESS SALE
Digital transformation firm PUBLIC Group International Limit...
17
|
Feb
|
NRG Marine bought by Alfa Laval to boost decarbonisation aims | BUSINESS SALE
Stockholm-listed engineering firm Alfa Laval has bought mari...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.