FDS seals new deal as it looks to grow network

The French group, which has its UK headquarters in Cleckheaton, West Yorkshire, has bought Cheshire-based Sealex for an undisclosed sum.

Companies under the FDS Group distribute their products to the offshore oil and gas sector to improve the industrial processes and safety of operations.

Sealex, based in Ellesmere Port, supplies sealing gaskets and hose products as well as personal protective equipment, work wear and spillage absorption materials designed to help protect the environment.

FDS, which has a turnover of £30m, said the acquisition would add an extra £3m to UK sales, and 28 staff to its UK workforce, taking the number of staff to over 250. A further eight jobs will be created following the deal.

The acquisition comes after FDS acquired New-Seal Gasket last month.

The New-Seal Gasket branches, located in Aberdeen, Glasgow, Middlesbrough, Ipswich, Cardiff and Bolton, will work under the Sealex name and be headquartered at Ellesmere Port.

FDS also owns Flexitallic and Novus Sealing in Cleckheaton.

The group has previously relied on a mix of direct selling or using independent distribution firms.

It decided to operate its own distribution channel after several leading distributors were snapped up by rival UK manufacturers or European distribution companies, making it more difficult to promote Flexitallic and Novus products.

While FDS’s preferred route to market will now be via Sealex, it will continue to supply the market via its network of independent distributors.

David Mitchell, group development director at FDS, said: “Although Sealex will form part of the FDS Group’s UK distribution network, we fully intend to continue supporting and supplying those independent distributors and cutters, which we have traditionally dealt with.”

The acquisition has led to a new structure at the top of the FDS group in the UK.

Phil Kelshaw, managing director of Flexitallic and Novus Sealing, will be responsible for all the FDS Group companies in the UK, including Sealex.

Paul Marray, managing director of Sealex, will become distribution managing director and will report directly to Phil Kelshaw.

Mr Marray said: “The acquisition of Sealex by the FDS Group is a hugely exciting step for all those associated with Sealex. We are tapping into a level of technical expertise and ‘best in class’ products that are second-to-none in the market place.

“I look forward with great optimism to releasing the potential of the New-Seal branch network, utilising the Sealex model of customer service, combined with the expertise contained within the New-Seal and the technical experience from the FDS Group.”

Mr Mitchell said FDS was looking at further acquisitions, with deals in Asia and the Americas in the pipeline.

About 50 per cent of the group’s turnover is through exports.

Mr Mitchell added: “It’s an exciting time for the group. We are involved in lots of things globally and changing our distribution strategy is one we hope to benefit from.

“We need to be in control of our own destiny in terms of the branch network in the UK. We are reacting to what is happening in the market place.”

The launch of the new distribution network comes as FDS plans to expand production of Novus seals to meet growing demand for its compressed-sheet fibre jointing products.

It has spent £2m on setting up a joint operation with a Kazakh company, which will supply major oil users with its range of seals for oil pipes and take advantage of the country’s expanding oil market.

This has led to the creation of eight new jobs in Cleckheaton, where it makes high-specification gaskets and sealing products for Government and commercial customers around the world.

Novus and Flexitallic export products globally to countries including the United States, China, Australia, New Zealand and Malaysia.

Total investment for the two companies over the last two years is almost £5m, including a major site restructure.

In 2008, Flexitallic moved from Marsh Works to new premises at Scandinavia Mill, where Novus was based, after FDS decided to consolidate its sites in Cleckheaton and Rochdale.

STAFF SET FOR IRONMAN CHALLENGE

Staff at Flexitallic UK and Novus Sealing, part of the FDS Group, have set themselves an ironman challenge.

The Triathlon Ironman Challenge, which takes place on September 9, includes a 2.4-mile swim, a 115-mile bike ride and a 26.2-mile run.

Martin Horbury, an accountant at Flexitallic, is organising the event and encouraging as many staff as possible to take part.

Eight staff will complete each leg of the of the challenge, equating to an 0.3 mile swim, a 14.4-mile bike ride and a 3.27 mile run.

So far, 22 staff from across the two companies have volunteered to take part, with five staff doing all three events (swimming, cycling and running).

Gorden Benson, the current British Junior Triathlon Champion, is supporting the event.

FDS Group manufactures and supplies industrial static sealing products.