Takeover to bring new jobs

Oct 17 2007 by Chris Knox, The Journal

A COMPANY that makes and repairs specialist pumps and seals for the chemical industry is set to double in size after being bought by an American firm.

The multi-million pound buyout of Middlesbrough-based MF Sealings will help the facility continue its rapid growth, with turnover expected to double from £3m to £6m within three years.

The purchase, by US fluid motion and control specialists Flowserve, will also involve doubling MF Sealings’ employees from 30 to 60 over the next two years.

MF managing director Ian Watson had been concerned that the business would not be able to expand its operation before the deal was struck and admitted that his current workforce had been struggling to keep up with demand. He has agreed to run the business for the next two years to help facilitate the buyout.

“The deal means the business can push ahead with its plans for strong growth. We have previously been stretched to full capacity but will now be able to handle our expansion,” he said.

The business is the only one in the North-East to service chemical pumps and flow valves in the same factory and plans to extend its activities into the water and pharmaceutical industries. It also expects to increase its market share in the UK chemicals sector from 30% to 60% over the next three years.

It recently upgraded to a 20,000 sq ft factory in the Brighouse Business Village and has planning permission to extend it by a further 8,000.

Flowserve plans to use the acquisition of MF Sealings to help facilitate a strong presence in the North-East and to add to their list of blue-chip clients in the wider business community.

Tom Ferguson, president of Flowserve Pump Division, said: “With our newly acquired Teesside facility as our primary establishment in this area, we will now be better positioned to locally serve the pump and mechanical seal needs of the global corporations with British operations in the petrochemical and industrial markets.”

The deal was struck with the help of Newcastle-based chartered accountants Tait Walker. Mr Watson added: “Having developed a strong and successful business model, initially I was looking to refinance the company to allow me to take it to the next stage of development when I was approached to sell. Tait Walker helped ensure that the deal ran smoothly.”