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North East pipeline specialists secure £500,000 investment

North East-based International Pipeline Products (iNPIPE Products) has secured £500,000 mezzanine investment from FW Capital to fuel expansion plans.

The designer and manufacturer of pipeline maintenance equipment in the oil and gas, petrochemical and water industries has used the cash to establish a new global headquarters in Newton Aycliffe.

Earlier this year, the firm’s management team completed an MBO in association with angel investor David Bacon, and the team are now keen to kick-start the company’s growth by expanding into pipeline testing, maintenance and pig tracking.

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 structured the investment to provide us with the working capital we’ll need to put our plans into action.”

Mr Bacon added: “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 the company 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.

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 buyout, 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.”

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