(L-R) Steve Lyon & David Stacey

Business continues on growth trajectory following 2016 investment

An equity buy-out has completed at Rotherham-based Industrial Pumps Group (IPG) Ltd with company Managing Director, Dave Carley, and Sales Director, David Stacey, taking full control of the business for the first time since they completed on a management buyout (MBO) in 2016.

The announcement follows a period of ‘sustained’ growth and profitability for the company, which continued to perform well throughout the pandemic under the watch of its new owners, adapting its product offering and building its market share through the early adoption of change in practice and procedure.

The ambitious duo initially took over the business from its previous owner in 2016 as part of a management buyout deal facilitated by a £500k investment from UKSE – an organisation which focusses on helping businesses in former steel areas with investments, loans and premises.

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Since then, Dave and David have led the team, and have implemented changes which has taken it from a steady local business, to one that is capable of capitalising on growth opportunities.  Moving from a reseller of pumps to a business that is an added value designer, servicer and supplier.

They now have framework agreements with a number of the major water companies which shows their importance within the industry and have approached UKSE once again for a further loan to help the company grow further.

With a clear vision for growth, they initially joined the business as trainees in the 1990s. Their agile and ambitious approach has seen the business increase its turnover by £5m, and its headcount by 23.

This would not have been possible without the UKSE investment, which secured the company’s growing presence amongst water utility companies and original equipment manufacturers, while this latest deal enables the duo to acquire 100% of the shares in the business.

Industrial Pumps Group (IPG) was bought by the duo from its previous owner in 2016, where the pair had worked since trainee level in the 1990s.

The company continued to perform well throughout the pandemic, where the Directors showed a cool business head, pivoting the product offering and build IPG’s market share through the early adoption of change in practice and procedure.

UKSE said this was the right time to let Dave and David take full control in order to have autonomy to realise their ambitions.

Commenting on the equity buy-out deal Managing Director David Carley said the business will continue to grow organically and bring more job creation within the Rotherham area.

He went on to say that thanks to the structure of the 2016 equity investment from UKSE – an organisation which focusses on helping businesses in former steel areas with investments, loans and premises – the management team had now secured a 100% shareholding without incurring costs or penalties.

David said: “We are extremely grateful for the success and growth we have experienced over the past year and especially thankful for Steve and the UKSE team for the support we have received over the years.

“The initial investment helped to facilitate the expansion of Industrial Pumps across our customer base and create new jobs which meant we were able to secure the company’s future here in Rotherham.

“Furthermore, exit discussions were fair and straightforward over two rounds to suit our cashflow, with no penalties.”

“We believe we are a stronger and more valuable company for having worked with UKSE, and we remain committed to our original vision of continuing to grow, and to create further job opportunities in the local area.”

Steve Lyon, Area Manager at UKSE, said: “Working with Industrial Pumps Group has been an absolute pleasure over the last 6 years. The sustained growth of the business is a testament to the hard work and commitment the Directors have shown, we wish them the best of luck with their future growth ambitions.

“As ever we are delighted to have positively contributed to a business which is creating job opportunities and to have helped a local business retain its strong presence within the region.”

“Despite the team exiting us as an equity partner, they have recently approached us for further loan investment to help them expand further and we have been happy to support them again.  As with all of the returns we make from our investments we will seek to invest this money in other local companies.”

UKSE provides loan and equity finance of up to £1m to existing companies which are growing, particularly those creating jobs.

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