East Yorkshire Hydraulics, a family-run business in Hull established nearly half a century ago, is eyeing future growth after being acquired by the son of one of its founders. The company has secured a six-figure loan from NPIF II – Mercia Debt Finance, managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II), to drive expansion following the buyout.
Company Background and Acquisition
Founded in 1979, East Yorkshire Hydraulics specialises in the design, installation and repair of hydraulic units across a range of industries. Headquartered on Harpings Road, the firm has expanded its client base over the decades to encompass sectors spanning steelmaking, aerospace and power generation. It also operates as a service centre for accumulator inspection and certification.
The acquisition sees Andrew Kirby take control of the company, having first got involved more than 35 years ago, lending a hand during his school holidays. His father, Barrie Kirby, and fellow engineer John Williams co-founded the firm in the 1970s. The transaction allows Mr Williams to step down and retire, while Barrie Kirby will continue in a part-time capacity.
Funding and Expansion Plans
The six-figure loan will strengthen the company's working capital and facilitate investment in new equipment. Andrew Kirby, managing director, said: "East Yorkshire Hydraulics has built a track record for expertise and reliability. It's an honour to be taking over the business and I hope one day to pass on the legacy to my own sons."
Kirby added: "Demand for hydraulic systems has increased in recent years as high energy costs encourage businesses to improve efficiency by replacing older hydraulic systems. We have also won new work after Brexit as companies have sought out UK suppliers. The business is now well placed across all sectors and the loan will help us to move forward and target new areas such as renewable energy."
Support from Lenders
Rebecca Pickering of Mercia Debt said: "Barrie and John have built a respected and profitable business over the years and Andrew, who himself has years of experience with the company, is ideally placed to take over the reins. We are pleased to support it as it enters an exciting new chapter in its history."
Sarah Newbould, Senior Investment Manager at the British Business Bank, said: "Through NPIF II, we're pleased to support the next stage of East Yorkshire Hydraulics' journey, helping to preserve a successful heritage family business while enabling continued investment in its people and long-term growth. Advanced manufacturing plays a vital role in driving innovation and regional economic prosperity, and this investment reflects NPIF II's commitment to supporting businesses that contribute to the UK's Modern Industrial Strategy and strengthen the country's industrial base."
