Sheffield-based X-Cel Superturn, which manufactures precision engineered components for the oil and gas sector, has acquired fellow Yorkshire business Colson Industries in an HSBC-backed £1.75 million deal.
Elland-based Colson Industries will operate as a 100 per cent subsidiary of X-Cel Superturn, which will strengthen the newly acquired company’s management team with the appointment of a technical director and sales director. It also manufactures valves for the oil and gas industry.
X-Cel Superturn also plans to quadruple sales at Colson from £2.5 million to £10 million over the next two years, adding 25 employees over the period to raise staff numbers to 65.
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.”
X-Cel Superturn was founded in 1984 by current Managing Director Andrew Taylor as Sheffield Superturn to manufacture small to medium CNC machined parts. The company has 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.
Colson Industries was founded in 1996 by Colin Smith-Moorhouse from a small workshop in Elland. The company now operates from a 30,000 sq ft facility, working with major oil and gas companies globally.
HSBC’s South Yorkshire Commercial team has provided a £2.5 million finance package to support the acquisition, and also to put a comprehensive working capital facility in place to help Colson Industries’ growth.