REECE GROUP COMPLETES THIRD ACQUISITION IN 18 MONTHS
3rd October 2013
As part of its continuing strategy to create a diverse engineering business, the Reece Group has acquired a 100% stake in Pipe Coil Technology Ltd.
The Reece Group is the holding company for a number of innovative North East engineering businesses including Pearson Engineering in Walker, Responsive Engineering in Gateshead and Velocity UK in Sunderland. These businesses operate in the defence, subsea, construction and oil and gas markets. Following the acquisition the group turnover will be £100m and the business will have over 500 local employees.
Pipe Coil Technology based the North East of England, is one of the world’s leading specialists in the design and manufacture of complete coiling, packaging and handling equipment for a wide variety of flexible piping products. The business has a forecast turnover of over £6m and has over 40 employees.
Reece Group chairman, John Reece, said: “This is another strategic acquisition for the Reece Group; it comes on the back of our acquisition of Velocity UK and Responsive Engineering last year and our recent purchase of the BAE Systems property on Scotswood Road. Pipe Coil Technology adds a third product company to our business, enabling us to explore another new market. The business has shown it can deliver world class engineering solutions and we are looking forward to working with the management team to grow the business.
Phil Kite, Reece Group CEO responsible for acquisitions stated:
“Our goal is to create a more broadly based engineering business which is less dependent on defence with strength in the oil and gas, construction and subsea markets. The acquisition of Velocity UK, Responsive Engineering and Pipe Coil Technology in the last 18 months highlights the progress made in delivering on our strategic plan. The acquisition of Pipe Coil Technology gives us another product business and we are excited by the opportunity this will create.”
Pipe Coil Technology Managing Director, Gordon Fiddes, who will remain with the business, said:
“It was the ambition of Reece Group that made them attractive as a buyer for the company. From the start of negotiations it was clear they wanted to invest in the business for all the right reasons. We are looking forward to working with the Reece Group and taking the business forward, in particular in the export market, where Reece Group has had considerable experience and success.”