SPECIALIST DRUG TRIALS COMPANY MAKES COOL £1.5m INVESTMENT

ACQUISITION IS BREATH OF FRESH AIR FOR FLAMGARD

A South Wales manufacturer of ventilation equipment for offshore oil platforms has opened up fresh opportunities to access new markets with the acquisition of a competitor.

Pontypool-based Flamgard has designed and manufactured ventilation equipment for over 20 years, specialising in systems for oil rigs, marine vessels and industrial power generation installations, including nuclear ones.

It has now bought the business of Calidair – which specialises in equipment for road tunnels, metro systems and nuclear facilities – from Stroud-based Clearwater Engineering and Fabrication Ltd.

The purchase was supported by Welsh Assembly Government funding and orchestrated by professional advisors and accountants Broomfield & Alexander, who have worked for the company for 12 years.

Flamgard managing director Lee Bramald said the acquisition had triggered a major drive to develop the enlarged company – including a move into new premises on the Pontnewynydd Industrial Estate in Pontypool.

B&A corporate finance director Seamus Gates said Flamgard was a well-established, well-run company which bucked the received wisdom that manufacturing companies couldn’t be acquisitive and ambitious.

“The company has demonstrated that good strategic thinking and a well-prepared business plan can open up funding opportunities, and the resulting judicious investment can pay dividends,” he said.

Ventilation equipment manufactured by Flamgard includes fire dampers, blast dampers, vents and filters which eliminate moisture and filter dust to ensure a supply of clean air. Some equipment is an integral part of emergency response systems and is constructed to resist heat and toxic fumes.

Many vents are controlled by compressed opening and closing mechanisms, which Flamgard also designs and manufactures.

But the key to Flamgard’s success is in designing the equipment to cope with extreme environments such as offshore oil platforms – and the same approach applies to the Calidair range.

Lee Bramald, who has been involved with the company for 20 years and took over as managing director five years ago, said there was a natural synergy between the two operations which could now be capitalised on as they sought to increase their combined £5m turnover.

“This deal has given us all a fresh impetus to really develop our business,” he said. “It comes on the back of several years of investing in machinery, and means we can use the knowledge we have to develop systems for a much wider range of markets.

“It also means we can negate the inevitable peaks and troughs which a business encounters when it’s very focussed on a limited number of markets.

“We have a good team here, including Broomfield & Alexander, who’ve been with us for 12 years. With them on board, I felt confident to go with the deal.

“It goes to show that a manufacturing business can expand and be successful in this day and age. We’re very excited and confident about the future.”

Sally Bashir, from solicitors Berry Smith LLP, who advised Flamgard, said that the strategic acquisition would enable the company to continue to expand and build upon its well-established reputation.

“Flamgard is now well positioned in order to become one of the leading companies in its sector, and we are delighted to have worked with Lee Bramald and Seamus Gates in the successful completion of the deal.”

Do you want to buy or sell a business, then contact our corporate finance team on 029 2054 9939 or email them at funding@broomfield.co.uk

19th - November