McColl sells another business in multi-million pound deal

Scottish tycoon Jim McColl has sold another of his businesses, Swiss pumps business Maag Group, in a deal likely to be worth hundreds of millions of pounds.

Clyde Blowers Capital, McColl’s investment vehicle, said yesterday it had agreed to sell the business to US rival Dover Corporation.

The Glaswegian entrepreneur, who sold Clyde Union Pumps in his home city last year for £750 million, described the latest transaction as “a very good deal”.

The value has not been disclosed but last year there was speculation the business could change hands for some £300m, and it has since performed ahead of expectations.

McColl acquired Maag Pump Systems as part of the $1 billion (£630m) takeover of the fluid and power division of Textron in 2008. In 2010 the businessman completed a merger of the company with Automatik Plastic Machinery, a German-based manufacturer of pelletiser equipment, leaving his fund with a 50 per cent stake in the combined business.

Under the ownership of Clyde Blowers Capital and its Swiss partner CGS Management, the enlarged business increased its exposure to fast growing markets, especially China, and invested in research and development.

McColl said he had initially intended to sell the business next year but the speed of its expansion brought early attention from buyers. The company had turnover of €130m last year, and McColl said it exceeded its €17m profit target by 50 per cent.

He said: “The Maag Group has been an excellent investment for Clyde Blowers Capital and represents an excellent result for the team and our investors.

“Since acquiring Maag Pump Systems from Textron in 2008, we have delivered on our strategy to grow the business both organically and through M&A, and in particular, the successful merger with Automatik Plastics Machinery.

“The business is now well positioned for the next phase of growth and we wish it continued success under the new ownership.”

The proceeds of the deal will be released to Clyde Blowers’ investors.

Headquartered in East Kilbride, the private equity group specialises in backing engineering firms, using its business know-how as well capital to add value to the enterprises it invests in. It recently raised more than £420m from investors for its latest fund.