Pyroban and Pyropress

TYPECarve-Out / Turnaround / Management Buy In

DATENovember 2017

SECTORSpecialist Engineering / Industrials

Longacre does not shy away from complexity. We acquired two separate businesses in a six-week accelerated corporate carve-out transaction and we sourced a new CEO to lead the group during that time. Pyroban was heavily loss-making and had manufacturing sites and operations across the globe.

The business

Pyroban is a leading European manufacturer of explosion protected industrial equipment, primarily generators and fork lift trucks, for use in hazardous areas. Pyropress manufactures components such as switches and valves, also for use in challenging environments. Both businesses were previously owned by Caterpillar, Inc.

Transaction Challenges:

  • Transaction speed and execution certainty were critical for Caterpillar, leaving limited time for due diligence
  • Caterpillar was selling two related, but distinct businesses in the same transaction
  • Due to the downturn in the oil and gas markets, revenues had halved from their peak and Pyroban was incurring heavy losses
  • Pyroban had three manufacturing sites and operations in five jurisdictions (UK, Netherlands, China, France and Singapore)
  • The MD responsible for both businesses remained with Caterpillar, which meant we had to find a new CEO for the group

Longacre Approach:

  • Longacre conducted financial diligence entirely internally and worked with a team of advisors in the UK, the Netherlands and China to complete a transaction within six weeks of agreeing exclusivity
  • Longacre worked with Brian Quarendon a highly experienced CEO to draft a restructuring and growth plan
  • Implemented a post-completion plan to ensure the businesses would be on the path to sustainable profits as standalone businesses as soon as possible


Development since acquisition

Pyroban completed its restructuring and is now sustainably profitable and growing well consolidating its strong market position in the UK, Europe and across the globe

Pyropress is fully standalone, with growing revenues and profits

Pyroban is now actively pursuing bolt-on acquisitions for both businesses to build a European leader in industrial safety products for hazardous areas. In October 2019 Pyroban acquired Baldwin and Francis, a designer and manufacturer of explosion proof and rugged electrical power supply equipment