The Reece Group has acquired a 100% stake in Pipe Coil Technology Ltd as part of an ongoing strategy to create a diverse engineering business.
The move will boost group turnover to £100m and will mean more than 500 local people will be employed by the business.
A holding company for a number of innovative North East engineering firms, The Reece Group incorporates the likes of Pearson Engineering in Walker, Responsive Engineering in Gateshead and Velocity UK in Sunderland, which operate in the defence, subsea, construction, and oil and gas markets.
Pipe Coil Technology, based in Walker, Newcastle, 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, which employs more than 40 people, has a forecast turnover of more than £6m.
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, the Reece Group’s chief executive, responsible for acquisitions, added: “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.”
The group says its strategy, to be implemented gradually, is to build on its success by creating employment and wealth in the North East. It is looking to expand in existing and new markets for engineered products and services, both organically and through acquisition.
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.”
The Reece Group’s corporate advisors were UNW, while its legal advisors were Bond Dickinson LLP. Pipe Coil Technology’s legal advisors were Ward Hadaway.