In October 2014, US-based multi-national manufacturing group, Graco Inc. (NYSE: GGG), acquired successful UK valve manufacturer Alco Valves Group from its founders.

Founded in 1977, Alco Valves Group manufacture and supply a wide range of high quality, bespoke industrial valves. Made to specific requirements and subject to rigorous testing, the valves withstand extremely high pressures and temperatures for use in critical applications.

After an ill-timed downturn in the oil and gas industry, Alco became a financial burden to Graco, requiring continuous cash injections as the business found itself in a difficult, loss-making position. Furthermore, Alco’s direct exposure to upstream oil and gas did not complement Graco’s other businesses; as such, Alco was increasingly viewed as non-core.

Despite Alco’s challenging position, Arkle Partners recognised potential. The company still held a strong reputation, was known for its trusted products, and possessed a committed, enthusiastic workforce. We approached Graco and worked to structure a deal both advantageous and valuable to them. Within three months we successfully acquired Alco.

Following our acquisition, we worked with the existing team at Alco to develop a new strategy. Backed by substantial funding from Arkle, Alco moved to new facilities, refocused its product range, implemented a new pricing model, and ultimately reattained profitability after just three months. To support further expansion, Arkle negotiated the acquisition of Sabre Instrument Valves in March 2021.

Arkle continues to work with the company to support its long-term growth and success. Alco remains a recognised leader in the global valve manufacturing industry. Looking to the future, Alco are committed to being at the forefront of the transition to renewable energy, as this nascent industry takes off.