Hytemp’s £34.5m buyout set to create new jobs

JOBS are expected to be created in Yorkshire following a £34.5m deal involving a major UK manufacturer.

Dunedin, the UK mid market buyout house, has backed the management buyout of Premier Hytemp, a global leader in the manufacture and supply chain management of engineered alloy components for the oil and gas industry.

The group has been acquired from Murray International Holdings.

Hide Ad
Hide Ad

Premier Hytemp is based in Edinburgh and has manufacturing facilities in Edinburgh, Sheffield and Singapore.

The company also has operations in Calgary, Canada and will soon open a base in Dubai.

Premier Hytemp was formed in 2008 when Premier Alloys acquired Sheffield-based Hillfoot Steel.

The group turns over more than £42m and supplies machined parts to the oil and gas sector globally.

Hide Ad
Hide Ad

A spokesman for Dunedin said: “The company has more than 200 employees worldwide and has a very strong heritage of engineering excellence. It works with nickel and low alloy steel used in critical components required for drilling and production purposes. It also operates Singapore’s largest steel heat treatment facility, which is currently being expanded.”

Dougal Bennett, the partner who led the deal for Dunedin, will join the board of Premier Hytemp.

He said yesterday: “Premier Hytemp fits with Dunedin’s strategy of investing in UK headquartered companies that are market leaders in their niche area and have strong international growth prospects.

“Commercially, Premier Hy-temp is one of a few companies within its sector that has the requisite engineering skills, customer approvals, certifications and geographical reach to meet the increasingly demanding needs of this global industry.

Hide Ad
Hide Ad

“The market for Premier Hytemp’s products is growing strongly, driven by unceasing global demand for oil and gas and significant investment in new oil wells.

“Premier Hytemp is well placed to expand its capabilities, geographic footprint and product offering to enhance its position as a global leader.”

Mr Bennett said Premier Hytemp planned to increase the size of its operation in Sheffield, which has 22 staff.

Dunedin hopes to expand the sales and technical resources at Premier Hytemp’s base in South Yorkshire.

Hide Ad
Hide Ad

He added: “Sheffield is a centre of excellence for nickel alloy work. That’s something we hope to build on.”

Donald Wilson, the chief executive of Premier Hytemp, said: “We have seen how Dunedin works with its portfolio companies to grow their operations internationally and we believe that this offers a very exciting opportunity for us.

“We have developed a good relationship with the entire Dunedin team and with their help, in addition to our continuing focus on customer service, we want to further develop the Middle Eastern, North American and South American markets.”

The management team at Premier Hytemp leading the buyout also includes Will Gold, the chief financial officer, and Doug Harrison, the chief operations officer.

Hide Ad
Hide Ad

Mike McGill, the group finance director of Murray International Holdings, added: “The transaction reflects Murray International Holdings’ continued focus on business turnaround, asset realisation and debt reduction from across its wide portfolio.

“During the early part of the recession, the management team at Premier Hytemp worked hard to enhance customer service and operational efficiency while also capitalising on profitable growth opportunities in the Far East.

“The resulting improvement in financial performance, coupled with scope for further international expansion and development, has underpinned the management led buyout. We wish the team continued success in the future.”

Dunedin is a UK mid-market private equity investor, which targets buyouts of companies in the UK with a deal size of £20m to £75m. Dunedin typically invests £20m or more in its portfolio companies.

Hide Ad
Hide Ad

The firm has enjoyed particular success in the industrial, business services and financial services sectors.

It has completed 13 portfolio acquisitions since 2011. The deal comes days after Dunedin announced its exit from the conference and training venues business, which is called etc.venues.