Flowtech Fluidpower raises £40m and eyes acquisitions

Flowtech Fluidpower  has raised £40m by floating on the Alternative Investment Market and is now plotting a range of acquisitions.

Flowtech supplies fluid power products to distributors and resellers of items used in industrial maintenance, repair and overhaul.

The Skelmersdale company had previously been owned over the last decade  by private equity firm Gresham. Zeus Capital acted as nominated adviser and sole broker on the float.

Chief executive Sean Fennon said: "We believe there is significant opportunity for organic growth through product development and international expansion. The directors have identified a number of businesses that could be acquired to accelerate complementary channel development and geographic expansion.

"We are delighted to join AIM. It offers us the platform to enhance our profile and achieve our future aspirations. We have been bolstered by the strong show of support at the placing from institutional investors which we believe is testament to our future prospects." Founded in  1983, Flowtech currently employs 160 staff, with sales of £34.3m and an operating profit of £4.3m in the year to December.