Sold. Freehold Hydraulic Engineering Company – Design, Manufacture & Repair Specifically For The Offsh

Freehold Hydraulic Engineering Company – Design, Manufacture & Repair specifically for the Offshore Oil & Gas Industry
Ref.IL017
Location North East England
Asking Price £ 1,550,000
This is a wonderful opportunity to acquire a Hydraulic Engineering company that has worked closely with the offshore Oil & Gas Industry for over twenty four years. They offer a full turnkey solution for their customers and are the leaders and innovators in design, manufacture and repair of Hydraulic Cylinders and Hydraulic Systems. The customer database includes world renowned Blue Chip clients with over 95% of their business coming from these regular repeat customers.

The company is registered ISO 9001 2000 Quality Management System and previously held the equivalent BS5750 since 1992. There are three separate divisions within the company each of which is offered as part of the total sale.

The company is expert in redesigning all types of equipment for greatly improved reliability and performance, with allied reduced maintenance costs. The ability to deliver skills and accuracy for such demanding industries are a testament to the company’s reputation as an innovator and supplier of the highest calibre. They have also developed and designed three unique hydraulic systems three of which have international patents in place with the most recent a “rig skidding system” which has attracted attention from the world largest petrochemical companies, one of which currently has the device on trial.

The business runs from three factory units on an industrial estate in the North East of England. Two of these units are owned by the vendors of the business and the other unit which is adjoining was rented as the company expanded its operations in 2007.

Expansion Potential
Whilst they work with offshore companies, there are no offshore maintenance contracts in place. The company are perfectly positioned to handle this work and it is only because they have been busy developing their own equipment and working flat out to design and build bespoke equipment for their clients, that they have not actively chased maintenance contracts. The other area which the company could also look at is the installation of the equipment which at present is sub-contracted out.

The company has had a patent granted and approved for a “vehicle positioning mechanism” for the automotive industry. This is a completely new diversification for the company who were asked, because of their expertise in hydraulics, to design and prototype a hydraulic mechanism that could be operated by one person saving time and money on the car production line, enabling correct positioning of the chassis and engine to be achieved with a minimum of time and effort. The company have developed a device for a major world wide car producer which has finished its trial. An order for 40 units has been completed with a possibility of future orders over a five year period.

Recently the company had their latest invention, a “rig skidding system” granted an international patent. They have had one of these systems installed on trial with one of the major world renowned petrochemical companies with other major players looking keeping a close and watchful eye on how the device performs. Early signs are that this could be a major product for the company in the years to come.