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12/01/2012

Investment from FW Capital set to transform Quick Hydraulics’ future

With a new management team in place following a recent management buy-in (MBI), a Tyneside hydraulic systems manufacturer has expansion in mind thanks to a six figure investment from FW Capital.

FW Capital, which manages the North East Growth Plus Fund, invested in Quick Hydraulics which originally began trading as a product distributor in 1977.

The company has expanded in the last 30 years to become the North East’s most respected hydraulic systems manufacturer.

Quick Hydraulics is a leading technology expert in hydraulic system design, manufacture, installation, service and training, with an experienced high calibre team and well established relationships with a customer base operating in the UK’s automotive, defence, energy, hygiene, marine and oil and gas sectors.

“We’re delighted to have taken over the helm of an established business with such a progressive reputation as Quick Hydraulics. The company has changed greatly since it was first established and is in an excellent position today. It has many long-standing customers as well as a great product range,” explained Andrew Esson, the company’s new managing director.

The new management team now has big ambitions to exploit the company’s existing range of products and services by diversifying into new markets and territories. New product and service development is also planned and a process improvement drive will also increase efficiency and improve customer service.

“We’re a new management team eager to get some of our plans off the ground. Quick Hydraulics provides specialist products and services and there are many potential new expansion opportunities for us to target. FW Capital’s investment provides us with the capital we need to achieve our plans,” Esson continued.

FW Capital stepped in once the MBI had been completed to structure an investment that provides Quick Hydraulics’ new management team with the capital for their expansion.

“Quick Hydraulics is very well established and has been a firm fixture on Tyneside for many years. The new management team have an excellent business to build on and FW Capital’s investment will play a crucial role in its future success.

“Once the new management team had secured the investment for the MBI from other investors, we structured a deal to provide the capital to drive forward their growth plans,” explained FW Capital investment executive, Rob Jones.

Michael Smith and Jason Kirkbride of advisers Tait Walker referred the deal to FW Capital.

Michael Smith said: “We are delighted to have achieved a great result for Andrew. He is a very capable individual and we fully expect him to deliver strong growth to Quick Hydraulics. I and the team at Tait Walker would like to wish Andrew every success with this venture and hope we can combine our talents with his again on future acquisitions”.

FW Capital’s Newcastle-based team has built up an effective adviser network.

“Advisers like Tait Walker are a good source of referrals for us. We’ve built up a strong network in the North East and we want to work with more banks and advisers. We have different investment criteria to the banks for instance and this can be good news for many businesses,” Jones explained.

Rob Jones can be contacted on 07717 802 978 or 0191 350 6316 and is based at FW Capital’s Newcastle office at Cuthbert House, City Road, All Saints, Newcastle upon Tyne NE1 2ET.

FW Capital has made the investment from the £20 million North East Growth Plus Fund which is part of the £125 million Finance for Business North East Fund.

The North East Growth Plus Fund is targeted at established businesses in the region and can provide single-round investments of between £350,000 and £1.25 million.

Advisers on the deal were: Ward Hadaway (legal to FW Capital), Watson Burton and Tait Walker (legal and corporate finance to the management team).

North East Growth Plus Fund