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03/07/2013

North East expansion in the pipeline following cash injection from FW Capital

The management team at International Pipeline Products (iNPIPE PRODUCTS™) is using a £500,000 mezzanine investment from FW Capital to fund the company’s ambitious new expansion plans.

Established in 1984, iNPIPE PRODUCTS is a leader in the design, manufacture and supply of pipeline maintenance equipment in the oil and gas, petrochemical and water industries.

In early 2013 the company’s management team completed an MBO in association with Angel investor, David Bacon. They are now keen to kick-start the company’s growth by expanding into the lucrative pipeline testing, maintenance and pig tracking market in the expanding oil and gas industry worldwide.

The North East is an important market for iNPIPE PRODUCTS and locating its new global headquarters in Newton Aycliffe has brought it closer to key customers such as GE Wellstream and Duco and will assist in alliance partnering and accelerated product development and approvals. Access to the expansion capital from the North East Growth Plus Fund managed by FW Capital was an important factor in the company’s choice of location.

iNPIPE PRODUCTS Managing Director, Simon Bell said: “FW Capital’s investment will fund the R&D we need to undertake to expand our testing and pipeline cleaning and maintenance business. We’ll also be re-branding the business and investing in new IT systems and equipment to underpin our business operations. FW Capital has structured the investment to provide us with the working capital we’ll need to put our plans into action.”

Angel investor David Bacon said: “One of the other companies I’ve invested in has previously received investment from FW Capital, so I was keen to work with them again. iNPIPE PRODUCTS is now in an excellent position to push forward into new markets and I’m sure this will be a very successful relationship for all of us.”

Pipeline testing and maintenance is a highly technical business and iNPIPE PRODUCTS will now need to invest in new products and services. The global market is currently valued at around £1 billion per annum and set for further growth as pipelines remain the most effective method of transporting oil, gas, chemicals and water.

Explaining FW Capital’s decision to invest in iNPIPE PRODUCTS, FW Capital Investment Executive, Rob Jones said: “iNPIPE PRODUCTS is an established business with an impressive management team.  They have a deep understanding of the industry they operate in and are ambitious to expand in markets with strong growth opportunities. The company has significant future potential and our investment has provided them with an injection of capital to back their plans.”

Tait Walker’s Corporate Finance team worked closely with Bell and his team in advising, planning and negotiating the management buy-out as well as the investment from FW Capital.

Michael Smith, Corporate Finance partner at Tait Walker said: “These are exciting times for iNPIPE PRODUCTS and it is now well placed for future growth. We first advised Simon and the team on the management buy-out, which needed to be structured carefully. We then provided advice on the company’s move to its new HQ in Newton Aycliffe which saw us planning and negotiating the expansion capital deal with FW Capital.”                                                                                                          

FW Capital’s Newcastle-based team has an effective adviser network and regularly works with advisers like Tait Walker to structure effective investments. Ward Hadaway provided legal advice to FW Capital and Watson Burton represented iNPIPE PRODUCTS.

Rob Jones is based at FW Capital’s Newcastle office at Cuthbert House, City Road, All Saints, Newcastle upon Tyne NE1 2ET and businesses can contact him to discuss their investment requirements on 07717 802 978 or 0191 350 6316.

FW Capital made the investment from the North East Growth Plus Fund which is part of the £125 million Finance for Business North East Fund. The fund is targeted at established businesses in the region and can provide single-round investments of between £350,000 and £1.25 million.

North East Growth Plus Fund