Deal Signifies Growing Influence of China and India In Acquisition Decisions

The Leeds office of law firm Irwin Mitchell has advised HORN, a portfolio company of INDUS Holding AG, on its multi-million pound acquisition of Sheffield-based manufacturer, PCL Air Technology.

Founded in 1938, PCL is recognised as the market leader in the design, manufacture and distribution of tyre inflation and compressed air products. Its products are sold in over 80 countries with many of its products being manufacturing from its base in Sheffield. In addition to Yorkshire, PCL has operations in India and China.

The deal sees UK-based industrial investor, Rubicon Partners Industries LLP, exit from the business.

Based in Germany, INDUS Holdings currently owns 40 companies which generate annual sales of c€1bn.

Paul Johnson, Corporate Partner at Irwin Mitchell, said: “PCL fits well with Indus’s German business, Horn Tecalemit, and there was a very good geographic fit with PCL’s operations including China and India. 

“Not only does this transaction illustrate the importance of the India and China markets for organisations when making strategic acquisition decision, it once again shows the capability within Yorkshire’s professional community to handle complex international deals within a tight timescale.”

PCL was advised by Jon Hustler, and Assistant Director John Clarke at Clearwater. Mark Pownall, Partner at Baker Tilly in Leeds also advised on the deal.

Jon Hustler, Head of Industrials at Clearwater, said:

“This transaction exemplifies how niche engineering businesses in the UK are attracting interest from overseas.  UK manufacturing businesses lead by example when it comes to competitiveness, innovation and geographic reach and as a result remain highly prized assets for large global players in industrial markets.  Rubicon has built PCL into a leading player in its field, providing globally-renowned products of the highest quality under an effective management team that will prove to be a successful asset for INDUS.”