The Martin family say that H.I.G. Capital is the “right partner” for Arco’s future
(Image: Hull Daily Mail)
Longstanding Hull safety wear company Arco has been sold to American investors who say the deal will help it grow. The family-owned business – which began more than 140 years ago and employs more than 1,300 people – is set to undergo a “new phase of investment” following its purchase by H.I.G. Capital.
The Florida firm said that since the appointment of Arco CEO Guy Bruce in 2022, the £268m turnover firm – which specialises in PPE and clothing – has undergone a “significant transformation” to create a more scalable and resilient business.
Its new owners say there are significant opportunities to grow with investment expected to go into its Arco-branded products. And the backing of H.I.G. means Arco will have the ability to acquire other businesses.
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.
“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.”
The sale to H.I.G capital does not include the firm’s Blackfriargate headquarters building, which was put on the market last year with a price tag of more than £9m. The value of the H.I.G. deal has not been disclosed.
Meanwhile a new board of directors at Arco will be chaired by Meine Oldersma, who was previously a non-executive director at the firm and is said to have a strong track record of working with multimillion-pound distribution businesses. It will also include Adam Taylor and Elliott Robinson of H.I.G., who led the firm’s investment team on the transaction, alongside Guy Bruce as CEO 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.
“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.”
Did you know you can make Hull Live a preferred source of Hull news in Google, which will mean you get more of our breaking news, exclusives, and must-read stories straight away? Here’s more information about what this means and how to do it – you can also do it straight away by clicking here.