Multimillion-pound buy south of the border to boost Aberdeen valve firm

Aberdeen Valve Supplies (AVS) has made a multimillion-pound buy south of the border.

The deal to acquire Walsall-based LG Ball Valves was supported by Clydesdale Bank.

AVS said the move would create a one-stop shop for valve design, manufacture, sale and testing.

LG Ball Valves, which was set up in 1992, employs 17 people. It has a niche position in the ball-valve market, manufacturing and suppling custom-made valves to customers predominantly in the oil and gas industry and production sector.

Production will continue at Walsall.

AVS was founded in 1996 and bought by Sylvia Aitken and Gordon Whyte in 2006 in a Clydesdale-backed management buyout (MBO).

Mr Whyte, group managing director of AVS, said: “Acquiring LG Ball Valves will enable us to fast-track our growth.

“Their reputation for a quicker turnaround than some of the larger multinationals will enable us to offer a premium service to our oil and gas clients.

“Their non-oil and gas customer base will also open up new opportunities.”

AVS, which has 14 employees, is expected to have turnover of £8million this financial year.

Jamie Ritchie, director of specialist and acquisition finance at Clydesdale Bank in Aberdeen, said: “We are delighted to announce this acquisition which strengthens Aberdeen Valve Supplies position in the marketplace. By acquiring one of their key suppliers, Aberdeen Valve Supplies will now be able to add value to customers through the manufacturing capability of LG Ball Valves.

“There is a good strategic fit between the two businesses, who together will provide a one-stop shop service.

“It is very pleasing to be able to support the continued growth of Aberdeen Valve Supplies again, after having been involved in its MBO two years ago.”