Plumb deal as Hayes UK acquires Arctic Products to create leading player
Hayes UK, a supplier of specialist safety, testing and servicing products to the plumbing and heating industry, has acquired Leeds-based Arctic Products, in a deal that will create the leading player in the British market.
Hayes UK has operations in West Sussex and the North West and supplies organisations such as Wolseley, Travis Perkins and British Gas as well as hundreds of independent plumbing and heating merchants across the UK.
It bought Arctic from parent Volvox Group for an undisclosed sum. Arctic can trace its roots back to 1966 when it introduced innovative pipe-freezing products.
The merged business will have combined sales of £5m and an international presence in the US, Canadian, Australian and French markets. Management believes that there is considerable potential for further growth in these and other, new overseas markets.
Lee Parsons will head up the combined business as executive chairman alongside Karl Dallimore of Arctic, who becomes managing director of the enlarged group.
Mr Parsons said: “Bringing Hayes UK and Arctic together creates an exciting and dominant force in the supply of niche consumable products to the heating and plumbing industry.
“We will extend our collective brands to new product areas and introduce over 200 additional products into our larger combined customer base.”
Mr Dallimore added: “Across the two businesses we have valuable and complementary brands, suppliers and customers and putting it all together under one roof gives us greater scope to continue the strong growth already being achieved by both units.”
The deal was structured and arranged by Baker Tilly corporate finance in Leeds.
Santander financed the acquisition while Finance Yorkshire provided development capital from its equity fund.
PwC is advising Volvox Group on future options, which could include a sale.