BHP Corporate Finance is delighted to have acted as lead advisor to Arkote Limited on its second acquisition in quick succession.
With a history of precision manufacturing in the South Yorkshire region stretching back over 130 years, Arkote is the global market leader in the manufacture and supply of industrial machine knives to the tobacco industry.
Having been acquired in 2002 by its US-based distributor, Fi-Tech Inc., Arkote has since continued its proud heritage. Exports make up over 80% of its turnover, with product supplied to some of the world’s largest machinery manufacturers from its state-of-the-art facility in Sheffield.
Arkote acquired Hardy UK, a Liverpool-based manufacturer of machine knives at the end of 2015, extending the group’s machine knife capability to the leather industry. This has been followed up by the acquisition of HMK Limited, a Congleton-based manufacturer of hardwearing knives, wear parts and machine spares. This second acquisition diversifies the group’s activities and sector focus, adding customers in the building products and food industries.
Peter Oxspring, Managing Director of Arkote, commented: “The manufacturing expertise of both Hardy UK and HMK within their particular industry niches are second to none, at the heart of which is the dedication of their employees. Arkote has been supported by Fi-Tech since its acquisition in 2002, with substantial investment in premises, state-of-the-art machinery and people. We plan to replicate that story of success with both Hardy UK and HMK in the coming years.”
The BHP team led by David Forrest and Kevin Davies advised Arkote on the acquisitions. Kevin Davies commented: “It’s been a pleasure advising both Fi-Tech and Arkote on these transactions. Being the global market leader in its particular niche, these two acquisitions broaden the group’s sector focus and provide the ideal platform for the next phase in its development. We look forward to continue working with the team at Arkote in what will undoubtedly be an exciting future.”
Peter Oxspring added: “Each acquisition came with its own unique set of challenges, and we were extremely happy to have BHP Corporate Finance on board throughout and add real value to the process. Their pragmatic, common sense approach and hands-on support has been invaluable. It allowed the team here at Arkote to focus on running the business, during what has been an extremely busy time.”
Activity within the corporate finance team at BHP continues to remain high, with a substantial number of opportunities in the pipeline. We look forward to sharing details of further completions in the near future.
By Kevin Davies
Director, BHP Corporate Finance