Member Article

Sheffield engineering firm acquires Colson Industries in a £1.75 million deal

Sheffield-based X-Cel Superturn (GB) Ltd, which manufactures engineered components for the oil and gas sector, has acquired fellow Yorkshire business Colson Industries in an HSBC-backed £1.75 million deal.

HSBC’s South Yorkshire Commercial team has provided a £2.5 million finance package to support the acquisition.

The deal was managed on behalf of the bank by Senior Commercial Manager Chris Alsop, with support from HSBC Invoice Finance Business Development Manager Ian Walker.

The funding has been allocated from HSBC’s recently launched £500 million SME Fund specifically for Yorkshire and Humber businesses.

Elland-based Colson Industries manufactures valves, also for the oil and gas industry. It will operate as a 100% subsidiary of X-Cel Superturn.

X-Cel Superturn also plans to quadruple sales at Colson Industries from £2.5 million to £10 million over the next two years, adding 25 employees over the period to raise staff numbers to 65.

Chris Sellars from Banner Jones Solicitors acted for X-Cel, whilst James Foster and Dean Gormley from Irwin Mitchell acted for HSBC. Don Gray at BHP Corporate Finance acted for X-Cel and HSBC.

X-Cel Superturn expanded through a combination of organic growth and acquisition and this year expects to increase turnover from £24 million to £30 million, independent of the Colson acquisition. It employs 130 people across its sites in Sheffield, Rotherham and Batley.

X-Cel Superturn managing director Andrew Taylor said: “Colson Industries offers exciting growth opportunities and complements our service at X-Cel Superturn.

“We believe the company can grow to a £10 million business within two years, which would make the group between a £40 million and £50 million business.

“The finance HSBC has provided has not only enabled us to complete this transaction, but also gives us the working capital required to help grow Colson. It is a very exciting time for our business and I am pleased HSBC has backed this transaction.”

HSBC South Yorkshire Area commercial director Mick Knowles aded: “We have worked with X-Cel for a number of years and this transaction strengthens the relationship further. X-Cel is a fantastic company that has continued to invest to take advantage of growth opportunities within its sector.

“I’m speaking to a large number of businesses from across South Yorkshire about their growth plans and it is fantastic to have the backing of the £500 million SME Fund for Yorkshire companies to enable HSBC to support them.”

This was posted in Bdaily's Members' News section by Clare Burnett .