Monday, May 19, 2014

News: X-Cel Superturn acquires Colson Industries

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Sheffield-based X-Cel Superturn (GB) Ltd, a specialist in highly complex CNC machined parts, has acquired Leeds-based valve manufacturer, Colson Industries in a £1.75m deal.

Founded in 1983 Sheffield Superturn flourished as a sub-contract machine shop. Following years of collaboration, Sheffield Superturn purchased X:CEL (GB) Ltd in 2007.

Continued growth and diversification meant that the main manufacturing plant at Atlas North was running out of space. In June 2012, the firm moved its Gasket and Seal division to the prestigious Advanced Manufacturing Park (AMP) in Rotherham.

Fitted with the latest CNC machinery, the 14,000 sq ft AMP facility manufactures proprietary metal seals and drill parts for the Subsea and Surface Tree manufacturers around the globe.

Elland-based Colson Industries manufactures valves, also for the oil and gas industry. It will operate as a 100% subsidiary of X-Cel Superturn, which will strengthen the newly acquired company's management team with the appointment of a technical director and sales director.

X-Cel Superturn also plans to quadruple sales at Colson Industries from £2.5m to £10m over the next two years, adding 25 employees over the period to raise staff numbers to 65.

HSBC's South Yorkshire Commercial team has provided a £2.5m finance package to support the acquisition, and also to put a comprehensive working capital facility in place to help Colson Industries' growth.

Andrew Taylor, managing director at X-Cel Superturn, said: "Colson Industries offers exciting growth opportunities and complements our service at X-Cel Superturn. We believe the company can grow to a £10m business within two years, which would make the group between a £40m and £50m business. The finance HSBC has provided has not only enabled us to complete this transaction, but also gives us the working capital required to help grow Colson. It is a very exciting time for our business and I am pleased HSBC has backed this transaction."

In addition to funding being provided by HSBC's South Yorkshire team, the transaction was led by Yorkshire advisors. Chris Sellars from Banner Jones Solicitors acted for X-Cel, whilst James Foster and Dean Gormley from Irwin Mitchell acted for HSBC. Don Gray at BHP Corporate Finance acted for X-Cel and HSBC.

Mick Knowles, South Yorkshire area commercial director at HSBC, said: "We have worked with X-Cel for a number of years and this transaction strengthens the relationship further. X-Cel is a fantastic company that has continued to invest to take advantage of growth opportunities within its sector.

"I'm speaking to a large number of businesses from across South Yorkshire about their growth plans and it is fantastic to have the backing of the £500 million SME Fund for Yorkshire companies to enable HSBC to support them."

X-Cel Superturn website

Images: X-Cel Superturn

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