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28/11/2016

Six figure co-investment deal for Peerless Gas from Wales Business Fund

Flintshire-based engineering firm Peerless Gas Controls Ltd (Peerless Gas) has acquired Lomax Offshore Couplings Ltd (Lomax), another parts manufacturer based in Burnley, thanks to a six figure co-investment deal from Finance Wales and other funders.

The deal is one of the first to be made from Finance Wales’ new fund – the £136m Wales Business Fund that was launched in September and is backed by the European Regional Development Fund (ERDF) and Welsh Government. It will run for seven years.

The company were introduced to Finance Wales by the Welsh Government.

Economy Secretary Ken Skates said: “The Wales Business Fund is set to play an important role in supporting SMEs across Wales to accelerate their investment and growth plans and to develop their home markets and to compete internationally.

“I am delighted to hear it is enabling Peerless Gas to expand its capacity, capability and competitiveness and diversify into new products and markets and generate new business opportunities.”

Peerless Gas is the largest British manufacturer and supplier of gas solenoid valves and components such as gas isolation valves, variable control valves and oil valves – these parts are used in domestic cookers and gas fires. The company also supply and manufacture gas and electric thermostats. Existing clients include Rangemaster/ Aga, Whirlpool/ Indesit and Dimplex.

Lomax manufactures and supplies parts for the oil and gas and aerospace industries. The acquisition deal will allow Peerless Gas to diversify its engineering and manufacturing operation and create three new jobs. 

“We’ve had a lot of success selling Welsh-made parts to the white goods market,” explained Peerless Gas Managing Director Steve Crutchley. “With the purchase of Lomax we’ll be able to offer a wider range of parts to our existing client-base as well as offering parts to new markets through Lomax’s existing relationships. The increase in business we can generate will not only secure jobs in Burnley, where Lomax have always been located, but increase the amount of machining work at our Flintshire base - creating and safeguarding jobs at Peerless Gas.”

“Steve and the Peerless Gas team have an excellent track record in their industry,” added Finance Wales Investment Executive Rhodri Evans. “Their acquisition of Lomax will strengthen their market position and allow them to diversify their range further.”

Finance Wales is an active co-investor and worked with other funders and existing investors on the deal. A flexible investor, Finance Wales offers debt, equity and mezzanine packages to Welsh small and medium-sized enterprises (SMEs).  Finance Wales currently manage nearly £1 billion of funds in Wales and can offer investments from £1000 up to £3 million per investment round.