Intrinsic Equity invests in innovative water product manufacturer

Ham Baker Group Ltd a company controlled by Birmingham-based Intrinsic Equity, has acquired Industrial Valves Ltd, Industrial Penstocks Ltd, Industrial Pipeline Solutions Ltd, IVL Flow Control Ltd and FJ Estates Ltd, together with the trade and assets of the Flow Division of Ham Baker Adams Ltd. The purchase has been funded with £5m of capital from investment house Intrinsic Equity in partnership with Alycidon Capital, and working capital funding from Leumi ABL and Ratesetter.

The Ham Baker Group operates as an independent specialist manufacturer and distributor of flow control products into the UK, Middle East, Far East and other export markets. The group offers customers engineered solutions for bespoke applications across the water, water waste and process sectors.  In 2016 the Group achieved sales of over £30m.

Recent projects undertaken by the business include the installation of penstocks for Thames Water as well as orders for precision-engineered penstocks for the prestigious Dukhan Highway East project in Qatar and the STEP project in Abu Dhabi.

The board of the newly formed Group will be joined by Rod Tompsett, as Executive Chairman, James Grenfell and Toby Arrowsmith from Intrinsic Equity.

The business has a strong track record of profitable financial performance but has been impacted in 2016 by a large contract in the process division which exposed the Group to onerous working capital and contractual commitments.

The Ham Baker Group’s competitive advantages are centred upon its design capabilities, the quality of products and its knowledge, reputation and ability to supply customers with precision-engineered solutions for water and waste water projects both in the UK and worldwide.

James Grenfell, Principal at Intrinsic Equity commented: "The Ham Baker Group is a fantastic business that will benefit from this new investment and strategic leadership. The core business has always been profitable and provides a great platform for us to focus on Ham Baker’s core technical solutions and product portfolio for the water industry."

Andrew Williams, CEO of the Ham Baker Group commented: “I look forward to working with Rod, James and their teams, and the additional financial firepower and strategic support they will bring to the business.  We are a customer-centric business and intend to keep this focus.”