US investor H.I.G. Capital buys 140-year-old UK safety wear firm Arco
What's the deal? H.I.G. CapitalDealroom has a profile for this one. Try Dealroom →, a Florida-based investment firm, has acquired ArcoDealroom has a profile for this one. Try Dealroom →, the family-run Hull safety wear and PPE company that employs more than 1,300 people. Financial terms were not disclosed.
The details: Arco, founded more than 140 years ago and run by the Martin family since 1907, reports a turnover of £268m. The deal excludes its Blackfriargate headquarters, which was listed for sale last year with an asking price above £9m.
What's the endgame? H.I.G. said the deal will fund expansion, with investment planned for Arco's own-branded product range. The firm's backing also gives Arco the capacity to acquire other companies.
Why now? Chief executive Guy Bruce, who took over in 2022, said the company had spent three and a half years building "a scalable platform capable of supporting significant future growth." The Martin family, which fielded unsolicited approaches "over many years," said it was seeking "the right partner for Arco's next chapter."
A new board will be chaired by Meine Oldersma, a former non-executive director. It will include H.I.G.'s Adam Taylor and Elliott Robinson, alongside Bruce and chief financial officer Dan Carr.
The signal: The purchase adds a long-established British distributor to the portfolio of a US private equity investor, extending a pattern of overseas capital acquiring UK family firms. For Arco, it marks a shift from family stewardship to institutional ownership as it targets a "substantially larger business."
Read more: britbrief.co.uk
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