The Courier & Advertiser (Fife Edition)
Flow control group is a Pryme mover
Dundee-headquartered manufacturer Pryme Group has moved to acquire a UK oil field equipment company for an initial £1.1 million fee.
West Pitkerro Industrial Estate-based Pryme said the acquisition of Hydratron from Sheffield-based Pressure Technologies would help it win new work in the aerospace, defence and oil and gas sectors.
Pressure Technologies said it could earn a further £2.25m depending on Hydratron’s trading performance in the 12 months to May 31, 2019.
Hydratron, which is based in Altrincham, supplies high pressure and flow control equipment to the global oil and gas industry.
Founded more than 35 years ago, Hydratron will continue to trade as normal under its current name.
Pressure Technologies said the oil and gas downturn had impacted Hydratron and the firm would have better prospects under new owners.
For the financial year ended September 30, 2017, Hydratron reported pre-tax losses of £470,000 on revenues of £3.85m.
Pryme Group was formed in 2014 to acquired Dundee-based GA Group and the firm has since gone on to make further bolt-on acquisitions of MKW Group and subsea engineering firm SengS.
Pryme chief executive Angus Gray said the group would now look to widen Hydraton’s market offering.
“We are delighted to have acquired a business with such a strong international brand and presence as Hydratron,” Mr Gray said.
“It is a company that we all respect, with parts of the group having dealt with them previously through various oil and gas projects, and we look forward to strengthening these relationships and integrating key areas across the business.
“I would also like to pay tribute to the team at Simmons for their support in getting this deal across the line.
“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.”
The move came as Pryme revealed a senior management reshuffle.
Commercial director Murray Kerr has been appointed to the newly created role of chief commercial officer and former Forum Energy Technologies executive Kerrie Murray has joined as chief financial officer.
The pair will play a significant role as Pryme looks to continue on a growth curve that saw revenues climb 23% to £17.5 million in the year to March.
The group now employs around 200 staff across its various operations in Scotland and England.