Flowtech Fluidpower (AIM: FLO) acquisition and update – rating looks modest
The specialist supplier of technical fluid power products has announced the further strengthening of its product offering in the growing sector of hydraulics through the acquisition of Nelson Hydraulics Limited and its parent company Nelson Fluid Power Limited (‘NFP’). There was also news of a smaller acquisition. FLO has been one of the lower profile new arrivals on AIM (listing May 2014) but it seems to be progressing very nicely.
NFP, which has been in the ownership of the Nelson family for 50 years and currently employs 40 staff, distributes hydraulic equipment, components and hose assemblies from its locations at Lisburn and Dungannon in Northern Ireland and Dublin in the Republic of Ireland. The business has a broad customer base in Ireland with emphasis in the crushing and screening, agricultural and marine and fishing sectors. For the year ended 30 September 2014, turnover was £6.7m producing EBIT of £0.7m. Net assets at the same date were £4.1m. The total consideration comprises £4.1m (part of which is subject to an…