Hydraulics firm powers into new era with buyout

An engineering business is eyeing growth after securing funding to support a management buyout.

East Yorkshire Hydraulics has received a six-figure loan from NPIF II – Mercia Debt Finance following its acquisition by Andrew Kirby.

The deal sees Andrew take control of the business founded in 1979 by his father Barrie and fellow engineer John Williams.

He says the funding will replenish working capital following the buyout and support investment in new machinery as the business targets work in areas such as renewable energy. 

The Hull-based company provides design, installation and repair services for hydraulic units, serving customers across the steelmaking, aerospace and power generation sectors. 

It also operates as a service centre for accumulator inspection and certification, and employs 18 staff, with John retiring following the deal and Barrie remaining in a part-time role.

Andrew said: “It’s an honour to be taking over the business, and I hope one day to pass on the legacy to my own sons.

“Demand for hydraulic systems has increased in recent years, as high energy costs encourage businesses to improve efficiency by replacing older hydraulic systems.

“We have also won new work after Brexit as companies have sought UK suppliers. 

“The business is now well placed across all sectors and the loan will help us to move forward and target new areas such as renewable energy.”

NPIF II – Mercia Debt Finance is managed by Mercia as part of the Northern Powerhouse Investment Fund II.

Rebecca Pickering, of Mercia Debt, said: “Barrie and John have built a respected and profitable business over the years, and Andrew is ideally placed to take over the reins. 

“We are pleased to support it as it enters an exciting new chapter.”

The £660 million NPIF II fund, which is operated by the British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to small and medium-sized businesses.

Sarah Newbould, British Business Bank senior manager, added: “We’re pleased to support the next stage of East Yorkshire Hydraulics’ journey, helping to preserve a successful heritage family business while enabling continued investment in its people and long-term growth.”

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