Engineering news
A Glasgow-based pump maker that employs more than 2,000 workers worldwide has been sold in a deal worth £750 million.
An agreement over Clyde Union Pumps, which has its headquarters in Cathcart, Glasgow, was struck last night with US firm SPX Corporation.
Jim McColl, 59, bought the business four years ago after starting as one of 60 apprentices when he was 16. It was formed out of Weir Pumps and Union Pumps.
Clyde Union will continue to be run out of the city by the same management team. Employees were being told of the announcement as they arrived for work this morning.
The business, which was owned by Clyde Blowers Capital, the industrial investment firm led by McColl, is said to have "grown rapidly" in the last four years.
The three years to the end of 2010 have seen an almost tenfold increase in profit from £4.5 million to over £40 million, with a rise in turnover from £44.7 million to almost £260 million for the same period, rising again to over £400 million in the current year.
McColl said: "Our success over the past four years has created a lot of interest in Clyde Union Pumps and we have had many enquiries about the business.
"Until now, our response has consistently been that the company was not for sale, because we still saw significant growth opportunities and were firmly focused on delivering the growth strategy which we had put in place.
"However, earlier this year we were approached by SPX, who were very keen to talk to us about acquiring the business.
"Since then we have been in discussions with SPX management and have reached an agreement for them to acquire Clyde Union.
"A very important part of our discussions has centred around us being convinced that SPX would be a good, responsible owner of this business and would continue to support its growth."
McColl added that the deal was about "more than money" and said he had travelled to the US to meet the chairman and chief executive of North Carolina-based SPX.
He said: "I made it clear to them that I had more invested in the company than just money.
"I told them I had strong emotional investment and I genuinely wanted to see the business and the employees go on and prosper.
"I would not have sold Clyde Union to anyone who wouldn't take the company to the next level. There had to be a long-term commitment."
McColl said when he bought over Weir Pumps, he saved it from "almost certain closure", and since then the number of staff employed at the Glasgow headquarters had increased from 535 to 891.
Don Canterna, president of SPX Flow Technology, said: "The company under Jim McColl has experienced very impressive growth and SPX is committed to investing in Clyde Union in order to ensure continued growth in the future.
"We are here for the long-term and we believe we are the ideal owner for this business."
SPX Corporation employs more than 15,000 people in 35 countries.