Flowtech Fluidpower, the specialist technical provider of fluid power and motion control products and engineering services, has acquired the business and certain assets of Bradford-based Thomas Wright/Thorite Group Limited (Thorite).
The transaction completed immediately following the appointment of administrators, Interpath Advisory, to Thorite.
Mike England, CEO of Flowtech, said: “We are delighted to acquire this well-respected brand and skilled workforce. On behalf of all of us at Flowtech we welcome our new colleagues to the Group. This is an exciting moment for us all as both businesses have a history of deep expertise and knowledge in power, motion and control.
“For us at Flowtech, adding Thorite’s expertise in pneumatics, automation and compressed air capability is an excellent fit and aligns perfectly with our strategy – a world of motion – which will enhance our scale, margin profile, and help to accelerate market share gains.”
Thorite is a provider of pneumatics, compressed air, vacuum and fluid handling products and systems and has traded since 1850. It operates from seven sales and service centres across the UK.
Under the terms of the acquisition, Flowtech will acquire all the plant and machinery, vehicles, stocks, and intangible assets of Thorite for a total cash consideration of £350,000.
Flowtech has also repaid Thorite’s outstanding debtor finance facility of £1.7m in return for an assignment to the Group of a debtor book totalling £2.6m. A sharing arrangement relating to the excess of debtor book recoveries over and above the £1.7m paid has been agreed with the administrator of Thorite.
In the audited accounts for the year ended 31 March 2023, Thorite generated revenue of £21.2m and delivered an operating profit of £79,000. Thorite has since experienced cash flow challenges and incurred operating losses due to a combination of internal issues and market headwinds. Thorite’s operating losses in the year to 31 March 2024 are estimated at £1.2m.
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