Clyde Blowers exits Hydreco

Clyde Blowers Capital said Feb. 28 that it closed the sale of Hydreco to Duplomatic Motion Solutions, which is backed by Alcedo. Financial terms weren’t announced. Hydreco, of the U.K., is a hydraulic technologies provider.

PRESS RELEASE

CBC complete sale of Hydreco to Duplomatic Motion Solutions

Clyde Blowers Capital (CBC), Duplomatic Motion Solutions (Duplomatic) and Alcedo SGR (Alcedo) are delighted to announce they have completed the successful sale of hydraulic technologies provider, Hydreco, from CBC to Duplomatic, sponsored by Alcedo.

Since acquiring Hydreco in 2008 from US industrial conglomerate, Textron, CBC has developed and broadened Hydreco’s range of products and expanded their market presence. Following the establishment of a presence in China and an increase of operational footprint within India in 2010, CBC supported the successful acquisition of HHW, based in Australia (2013). The business now has a significant global reach, with a focus on the Transport (APAC), Defence (UK) and Construction (Europe) sectors.

In preparation for a successful exit, Hydreco was legally separated from sister company David Brown Gears in 2016, following the operational independence that already existed. In this time, the business has strengthened key management teams in the UK and Australia, secured multi-year contracts with new customers in both the Defence and Transportation sectors alongside supporting robust growth from long-standing customers in the Construction market. As a result, Hydreco’s sales have increased by 28% since 2015, to over £25.6m.

Hydreco will join Duplomatic Group contributing its strong positioning within the Mobile market to the existing platform, consolidating Duplomatic’s position as a leader in the global Motion Control market.

CBC CEO and Chairman, Jim McColl, commented: “I am thrilled to announce the successful exit of Hydreco to Duplomatic. Following an impressive period of global expansion and product development, the company is now well placed for their next chapter of growth under new ownership. It’s been a great pleasure working with the team at Hydreco and we wish them all the very best for the future.”

Duplomatic CEO and Chairman, Roberto Maddalon, commented: “We at Duplomatic are happy to welcome Hydreco and their management within our Group. This acquisition is a further step in our growth path, aimed at consolidating our leading position in the market and widening our product portfolio and international footprint”.

Marco Guidolin, Partner at Alcedo, said: “Duplomatic is an Italian champion which competes successfully on a global scale, with a multinational profile and a highly skilled management team. The acquisition of Hydreco perfectly fits with our strategy of fostering growth of our portfolio companies leveraging on the integration of highly complementary businesses leaders in their respective markets”.

Cavendish acted as exclusive financial advisor to CBC for the transaction, with CMS acting as legal advisors for CBC.

For Alcedo, the deal was followed by the Partners Michele Gallo and Marco Guidolin. Duplomatic and Alcedo were assisted by Deloitte Legal Italy, Gitti and Partners and Bryan Cave for legal matters. Deloitte took care of the financial and tax Due Diligence on Hydreco Group.

 

February 28th, 2019.