PEGL bought out by US goliath, Parker Hannifin

Posted on 29 Sep 2015 by Victoria Fitzgerald

Sheffield-based President Engineering Group has been acquired by Parker Hannifin Corporation.

The Queen’s Award-winning firm – which manufactures precision engineered valves and related products for use in liquefied natural gas (LNG) and other industrial applications – has manufacturing sites in Sheffield and additional operations in Pittsburgh, Pennsylvania and Ahmedabad, India.

One of PEGL's longest serving staff members, Charlie Bott, collects the company’s Queen's Award.
One of PEGL’s longest serving staff members, Charlie Bott, collects the company’s Queen’s Award.

In its latest financial year the business generated revenues of £19m.

Mark Henley, managing director of President Engineering, commented: “This is a great opportunity for both Parker and our business.

“Parker has the financial resources and scale to take advantage of the numerous opportunities in our markets, and I am confident that this is the right home to take President Engineering to the next level of global competition.”

In 2010, the management buy-out was financed by YFM Equity Partners from Flowgroup plc.

YFM Equity Partners, investment director, Mary Broadhead, said: “This is a perfect example of YFM helping to unlock the potential of a small regional business, through its international expansion.

“During the period of our investment, the business increased revenues by over 75%, driving an outstanding return for our investors. We enjoyed working with Mark and the team as they grew profits and exports. We wish them continued success in the future.”

USAUKThe acquisition was recommended by a collection of Yorkshire professional services firms, with Christian Mayo and Giles Taylor of KPMG and Richard May of DLA Piper providing financial and legal advice, respectively, for the shareholders of President Engineering and Amanda Partland of Eversheds advising Parker.

Christian Mayo, partner and head of corporate finance for KPMG in Yorkshire, said: “The completion of this acquisition has produced a fantastic result for the shareholders and provided a strategic UK asset for Parker.

“President Engineering represents another in a long line of successful Yorkshire-based engineering businesses making headlines on the global stage, and I am pleased to have worked with the team in introducing Parker to support the business through the next stage of its growth.”

Richard May, managing partner for DLA Piper in Sheffield, said: “We acted on the President Engineering MBO in 2010 and it is great to have now helped the Sheffield based team and equity funder make a success of their hard work and investment. I am sure the business will thrive with Parker.”