News: THS Tools Group taken over by Troy

Rotherham-based THS Tools Limited has been acquired by engineering distribution company Troy UK, for an undisclosed sum.

The Templeborough-based tool wholesaler is the UK's largest buying group for independent industrial distributors. Similarly, Devon-based Troy is the UK's leading group of independent engineering distributors in the field.

The companies believe that the deal creates an independent buying group of substantial scale, and assists both organisations in creating further competitive advantage for their members in the combined challenge of competing with national rivals.

In the buying groups, members combine their purchase volumes and use this to improve their prices and in turn become more competitive, providing an alternative to national distributors, builders' merchants, tool specialists and online retailers.

THS members have a collective turnover of £300m and 140 outlets can offer commercial terms with 180 plus brand leading suppliers such as 3M, Makita, Draper and DeWalt.

The deal concluded on April 1 and it is expected that the well-known THS brand will remain and staff at its operations at the Head Office in Rotherham will also remain in place for the foreseeable future.

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Paul Kilbride, chief executive at Troy UK, said: "Our philosophy has always been to invest strategically and responsibly.

"This exciting new chapter further reinforces our goal to attract the highest quality products and customer service at the best price for our valued membership, thus increasing our buying power to its optimum level.

"We are delighted to welcome THS to the Troy Group and look forward to prosper and grow for years to come."

Troy UK were advised by Mazars.

THS Tools Group was founded in 1975 by Ken Yarker and a group of independent dealers and only had five suppliers. By 1980, THS had a distribution network of 39 members and 50 suppliers.

In March 2001, THS headquarters relocated from Rugby to its current premises based in Templeborough, Rotherham. Since the relocation THS has continued to grow to become the UK's largest buying group for independent industrial distributors with over 100 members and 180 suppliers.

THS website
Troy UK website

Images: Troy UK

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News: Rotherham firms flying the flag

Leading Rotherham companies are amongst the mid-market firms that are driving growth in the region, according to the Yorkshire Report 2016, published by accountancy and business advisory firm BDO LLP.

Illustrating trends in the financial performance of selected companies, the report highlights that mid-market companies in Yorkshire created 21,000 new jobs last year. Turnover was up 4% to £106.2bn compared to 6.9% the previous year but overseas turnover saw a worrying 11% drop compared to a 7.7% increase the previous year. Operating profits were up 8% to £4.8bn.

The report analyses the financial performance of the top 250 companies by turnover in the Yorkshire region. Analysis is split between the 50 largest organisations and the next 200 mid-market businesses.

Mid-market companies are driving the growth in the region with the top 200 companies vastly outperforming the largest 50 firms. Their profitability soared by 200% to £861m, based on a 10% increase to £24.4bn in turnover. The top 50 managed just a 2% increase in turnover.

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Jason Whitworth, M&A partner at BDO in Yorkshire, described the mid-market firms as "Yorkshire's unsung heroes." He added: "Whilst there are many bright spots for businesses, there's no denying we continue to face challenging and uncertain times. However, businesses should not allow this to curb their ambitions and we should all pull together to grasp today's opportunities that could deliver significant growth in the future.

"What emerges from this year's Yorkshire Report is a picture of a bustling ecosystem that is well placed to take advantage of the opportunities presented by devolution. However the challenge remains that both politicians and business leaders need to unite to ensure that those opportunities are not missed, so that the region can continue to play its part in the Northern Powerhouse."

50 of the 250 where from South Yorkshire, which had a collective operating profit of £479m.

Rotherham firms in the Top 250:

- A.E.S. Engineering Limited, the parent company of award-winning Templeborough manufacturer, AESSEAL
- AMG Superalloys UK Limited, hi-spec metals manufacturer formerly known as London & Scandinavian Metallurgical Co Limited (LSM)
- ASD Limited, leading lighting manufacturer based on Barbot Hall Industrial Estate
- Falcon Capital Investments Limited, an investor and operator of care homes with a turnover of £61.8m, registered to an address in Masbrough
- Jeld-Wen UK Limited, one of the world's leading manufacturers and distributors of windows, doors and stairs
- Maplin Electronics Limited, Manvers-based retailer whose latest yearly sales figure climbed 6.3% to £237m
- New York Bakery Company Limited, operates the largest bagel production facility in Europe, based at Swinton
- Nicholas Associates, fast-growing industrial and commercial recruiter that is aiming for a £200m turnover within five years
- Schaeffler Automotive Aftermarket (UK) Limited, based at Waleswood, the global integrated automotive and industrial supplier includes leading brand, LuK
- SVM Global Limited, Parkgate firm that is the largest reseller and distributor of corporate gift cards, E-vouchers and gift vouchers in the B2B and the corporate gifting market
- T.H.S. Tools Limited, the Templeborough-based tool wholesaler is the UK's largest buying group for independent industrial distributors

Pictured is a flag-raising ceremony to celebrate AESSEAL securing the Queen's Award for Enterprise: Innovation 2016.

BDO website

Images: AESSEAL

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