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 a technical director and sales director. The firm also manufactures valves for the oil and gas industry.
X-Cel Superturn plans to quadruple sales at Colson from £2.5 million to £10 million over the next two years, adding 25 employees to raise staff numbers to 65.
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.”
The company was founded in 1984 by Andrew Taylor as Sheffield Superturn to manufacture small to medium CNC machined parts.
It has expanded through 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.