Hull safety wear company Arco, which began more than 140 years ago and employs more than 1,300 people, has been bought by US firm H.I.G. Capital. The Florida-based investor said the transaction will fuel the company's expansion, with Arco poised to enter a "new phase of investment."
The family-run enterprise, which focuses on PPE and clothing, has a turnover of £268m. Since Guy Bruce took the helm as Arco CEO in 2022, the company has experienced a "significant transformation" to establish a more scalable and robust operation, according to H.I.G.
Growth prospects and investment plans
The new proprietors indicate there are substantial growth prospects, with investment anticipated for its Arco-branded product range. Additionally, H.I.G.'s support means Arco will possess the capability to purchase other companies.
Thomas Martin, spokesperson for the Martin family who entered the business in 1907, said: "For generations, my family has been proud to lead Arco and to help build the business it is today. We have always seen ourselves as custodians of the company, with a responsibility to protect and develop it for the generations that follow."
"We have received unsolicited approaches from potential buyers in the UK and internationally over many years. However, this was never simply about finding a buyer. It was about finding the right partner for Arco's next chapter – one who shared our ambition for the business and our commitment to its people, customers and suppliers."
Martin added: "Arco is a stronger business today as a result of the professionalisation of its strategy, governance, board and executive team. Having considered the options carefully, we believe H.I.G. is the right partner to support and guide the next phase of Arco's development. I am confident that we are entrusting the business to good hands."
Deal details and new board
The transaction with H.I.G Capital excludes the company's Blackfriargate headquarters building, which was listed for sale last year with an asking price exceeding £9m. The financial terms of the H.I.G. deal have not been revealed.
A new board of directors at Arco will be led by chairman Meine Oldersma, formerly a non-executive director at the company and said to have a strong track record of working with multimillion-pound distribution businesses. The board will also comprise Adam Taylor and Elliott Robinson from H.I.G., who spearheaded the investment team on the deal, together with Guy Bruce as chief executive and Dan Carr as chief financial officer.
Mr Bruce said: "Over the past three and a half years, we have transformed Arco, strengthened our operations and built a scalable platform capable of supporting significant future growth. We now have the infrastructure, talent and capabilities to support a substantially larger business."
"The decision to partner with H.I.G. reflects a strong alignment of both value and values. They bring significant investment capability, proven expertise in distribution and a track record of working alongside management teams to build businesses for the long term."
Bruce continued: "The safety landscape is changing rapidly, and our customers consistently tell us that they need a reliable, capable and compliant partner to underpin their safety strategies and help them achieve their own business objectives. Arco's expertise, supplier relationships and understanding of workplace safety have never been more relevant."
"With H.I.G.'s support, we have an opportunity to build on those strengths: to deepen our customer and supplier partnerships, broaden our proposition, invest in our capabilities and pursue opportunities that will extend our reach."
"We have an ambitious vision for Arco. It is about growing and evolving the business while retaining the expertise, values and customer focus that have made it successful for more than 140 years. H.I.G.'s experience and commitment to the sector make them an exciting partner for the next stage of that journey, and I am energised by what we can achieve together."
