Gresham backs the MBO of Flowtech

Gresham Manchester has backed the management buy-out of Flowtech, the leading catalogue supplier of pneumatic and hydraulic products in the UK. Gresham is backing the existing operational management team and Stan Keyworth joins as chief executive. This represents the fourth deal completed by Gresham in the North West this year.

Flowtech, which is headquartered in Skelmersdale, Lancashire, is a successful fast-growing business. It has achieved an average rate of growth of 20%per annum in the last two years.

The company focuses solely on supplying the independent distributor market in the UK who then sell on to end users and OEMs. Flowtech provides a value-added service to these distributors providing them with their own branded catalogues, marketing and logistical support and back office services.

Flowtech sells the largest number of pneumatic and hydraulic products in the country (over 40,000 products) through its annual catalogue and online, offering next day delivery.

Flowtech has approximately 3,500 customers throughout the UK serving a large variety of users of such products across a broad section of British industry - including utilities, food processing, building maintenance and general manufacturing.

Andy Marsh, director of Gresham's Manchester office, said: "We are delighted to be backing the MBO of Flowtech as we think it is a great support services business. The strength of the management team, its market-leading position and its growth potential make it an exciting investment for Gresham."

Stan Keyworth, chief executive of Flowtech, said: "With Gresham's support we will now be able to reach the full potential of our business by growing our customer base, increasing the number of products we supply and by continuing to provide market-leading customer support. We are looking forward to working with Gresham to take our business forward."

Andy Marsh and Ken Lawrence of Gresham will join the board as non-executive directors.