Pryme eyes growth after ‘perfect fit’ acquisition

● Private equity backed buyer aiming for sales of £40m by 2021

0 Sheffield’s Pressure Technologies have sold Hydratron to the Dundee-based manufacturer A Dundee-headquartered integrated manufacturing firm has acquired a producer of high pressure and flow control equipment as it targets turnover of more than £40 million by 2021.

Terms of Pryme Group’s purchase of Cheshirebased Hydratron were not disclosed. But the Scottish firm’s chief executive Angus Gray said the acquisition from Sheffield-based Pressure Technologies was the “perfect fit” and would provide comprehensive engineering services to clients across the UK as well as increase the group’s presence across the oil and gas, aerospace and defence sectors.

Private equity backed Pryme said production synergies are expected to create greater efficiencies and help grow the business by 15 to 20 per cent over the next 12 months.

Following the acquisition, Pryme Group now has 260 staff and expects to increase turnover from £15.6m in March to more than £19.5m by the end of its current financial year.

Gray said: “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, chief executive 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.

“The sale of the business to Pryme will immediately enhance its critical mass and market position.”

The acquisition was backed by Simmons Private Equity and shareholders of Pryme Group. A corporate finance team at KPMG advised Pressure Technologies on the disposal of Hydratron.

Pryme said its new addition complements its existing operations in locations such as Dundee and Ellon. The Scottish business also said recently that it had seen its sales orders grow by about a quarter in the year to March.