Hydromarque Ltd set for significant growth following private equity investment

By Bridging Loan Directory 1st March 2021

UK-pump specialists, Hydromarque Ltd, is set for significant expansion following its acquisition by a specialist private equity backer.

BCF Equity Partners has acquired Peterborough-based Hydromarque in a deal totalling £2.7m.

Hydromarque is an exclusive UK distributor of Gorman-Rupp, Cornell and Wallwin pumps across a range of industries including water and food production.

Following acquisition, BCF is now looking to significantly grow the business and increase market share as the pump industry moves away from submersible products towards above ground pumps.

The acquisition was supported by Shawbrook Bank via a £1.4m commercial loan.

Rob Newcombe, Managing Director of Hydromarque Ltd, said:

“We are delighted to have gained the support of BCF Equity Partners as we look to take the next step in the Hydromarque journey.

We have high ambitions to grow the business and bringing on board a professional investor to support that will add real value to those efforts.”

The industry is moving away from submersible pumps towards above ground pumps and this will drive further growth for Hydromarque.

In addition, the UK water industry has committed to spending £51bn in the next five years on improvements to UK sewage and water infrastructure and with businesses in the food industry announcing post-Brexit plans to source more produce from UK-based companies the outlook is extremely healthy.

Coupled with both of those situations, the growing environmental concern remains and companies will be looking to increase the recycling of water – which in turn drives further opportunity for Hydromarque.

Through the support from BCF, we are in prime position to take advantage.”

Established in 1987, Hydromarque Ltd is a privately owned business which was the subject of a management buy-out by its current management team in 2013.

In addition to being an exclusive UK distributor of Gorman-Rupp, Cornell & Wallwin Pumps, the business also specialises in technical pump assistance and system design, pumpset drawings, in-house repairs and training of operators and maintenance staff.

The company enjoys a healthy and growing client base and works with some of the most prominent brands in their sectors.

In the water industry, Hydromarque has coverage across the UK serving all the regional water utility companies.

The Company also supplies many of the major UK food businesses particularly in the vegetable/meat processing and snacks sectors.

Simon Stephenson, a Director at BCF – an independent private equity house specialising in investing in growth businesses valued between £3m and £10m – said:

“Hydromarque is a consistently strong performing business that benefits from strong supply chains and a wide customer base.

This investment in Hydromarque required the support of a lender who can make sensible judgments and execute quickly and working with Shawbrook has provided everyone involved with certainty and the confidence to press ahead.

We look forward to working with the Hydromarque team through its next chapter of growth.”

Steven Armstrong, a Director within Shawbrook’s Corporate Lending business, said:

“As a private equity house, BCF is highly regarded by Shawbrook and we’re delighted to work with them on this investment.

With pumps being found in the majority of industrial applications, Hydromarque has access to a large national marketplace to underpin its future growth and we are excited to be able to play a part in the success of the business following this acquisition.”

This is a great example of what Shawbrook do best; quick response to the initial request, a flexible and innovative approach to structuring a solution, pragmatism in respect of facility terms and a fast path to completion.

We are excited to see what the future holds for both Hydromarque and BCF.”

Shawbrook was introduced to this opportunity by Bishopsgate Corporate Finance.