Unquote

Gresham’s Flowtech raises £40m in IPO

  • Ellie Pullen
  • LinkedIn  
  • Google plus  

Gresham Private Equity has fully exited portfolio company Flowtech Fluidpower in the business’s IPO on the AIM segment of the London Stock Exchange, which gave it a market cap of £40m.

Flowtech sold its whole share capital in the flotation, resulting in net proceeds and a market cap of £40m for the company and its selling shareholder, Gresham.

Shares were priced at 100 pence each for the flotation. Flowtech started trading on the AIM this morning (21 May) under the ticker "FLO".

Gresham sold 100,001 shares in the placing, resulting in proceeds of £100,001, while Flowtech garnered the majority of the proceeds through the issue of 39.9 million new shares. The company will pay down senior debt via the proceeds.

An overallotment option comprising 972,200 shares and a warrants option of 1.2 million have also been granted. If both are exercised in full, the company's market cap will increase to £42.2m.

Zeus Capital acted as nominated adviser and broker for the flotation.

Previous investment
Gresham acquired Flowtech in September 2004, in a deal believed at the time to be worth around £50m. The GP acquired a majority stake, while Flowtech's management also invested. Barclays provided a debt package comprising senior debt and a working capital facility, according to unquote" data.

Company
Founded in 1983, Flowtech is headquartered in Skelmersdale in Lancashire with an additional office in the Netherlands and a logistics centre in China.

Flowtech is a supplier of technical fluid power products and has three core distribution categories: pneumatics, hydraulics and industrial hose.

The company offers its products to original equipment manufacturers as well as supplying own-brand products. It claims to have a customer base of around 3,000 distributors and resellers.

Flowtech generated revenues of £34.27m last year, as well as an operating profit of £4.3m. It employs 160 staff. At the time of Gresham's acquisition, the company employed 120 staff and generated turnover of £19m, according to unquote" data.

People
Sean Fennon is the CEO of Flowtech.

  • LinkedIn  
  • Google plus  

More on Exits

Latest News