After its purchase of Norwegian Seals earlier this week, industrial belting firm Fenner is to buy specialist hose manufacturer Mandals and Florida-based American Industrial Plastics.
The three deals completed this week are expected to create inroads to the North Sea oil and gas market according to Fenner’s chief executive Nick Hobson. He said it will reinforce the company’s position as worldwide experts in the manufacture of reinforced polymer materials, while adding new capabilities vital for oil drilling firms operating in the North Sea.
American Industrial Plastics is a precision machining company based in Daytona Beach, Florida, and will become part of the Fenner Advanced Sealing Technologies business.
The company uses computerized 5-axis milling, turning and routering to produce highly detailed and sophisticated plastic parts. Gross assets are estimated to be roughly £2.4m.
Based in Norway, Mandals manufactures the machines that make the fabric used in hose production. The benefits of acquiring the company are huge, according to Mr Hobson: “The end markets served by Mandals enjoy attractive, long term growth characteristics which will support Fenner’s strategic growth objectives.”
Add to the above the acquisition of Norwegian Seals, another Scandinavian company that specialises in subsea sealing technologies – attractive to Fenner because of its CDI Seals division. CDI has a customer base that has operations in harsh environments with extreme temperatures, chemical and corrosion resistance, extreme pressure and wear.
Mr Hobson said that with the trio of deals, Fenner is now very well-placed to move into the North Sea and do business with the oil and gas companies that operate there.