A hydraulics company established almost 50 years ago is looking to the future after being acquired by the son of one of the founders.
East Yorkshire Hydraulics has secured a six-figure loan from the NPIF II – Mercia Debt Finance, which is managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II), to support its growth following the deal.
The buyout gives control of the business to Andrew Kirby, who started work with the company over 35 years ago by helping out in the school holidays. The Hull-based company was founded in 1979 by Andrew’s father Barrie Kirby and fellow engineer John Williams. The deal enables Mr Williams to retire from the business while Barrie Kirby will remain in a part-time role.
East Yorkshire Hydraulics serves steelmaking, aerospace and the powergen industries sectors and offers a complete service covering the design, installation and repair of hydraulic units. It is also a service centre for accumulator inspection and certification. The business currently employs 18 staff. The funding will enable it to replenish working capital following the buy-out and invest in new machinery.
Andrew Kirby, Managing Director, said: “East Yorkshire Hydraulics has built a track record for expertise and reliability. 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 out 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.”
Rebecca Pickering of Mercia Debt added: “Barrie and John have built a respected and profitable business over the years and Andrew, who himself has years of experience with the company, is ideally placed to take over the reins. We are pleased to support it as it enters an exciting new chapter in its history.”
Sarah Newbould, Senior Investment Manager at the British Business Bank, said “Through NPIF II, 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. Advanced manufacturing plays a vital role in driving innovation and regional economic prosperity, and this investment reflects NPIF II’s commitment to supporting businesses that contribute to the UK’s Modern Industrial Strategy and strengthen the country’s industrial base.”
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.