THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
Based in Western Sydney, Pumpseal Sales is a longstanding wholesale distribution business that specialises in the sales and service of industrial pumps, related equipment, and wear parts. Representing a range of leading global equipment vendors, the Business’s product offering spans motorised pump sets, bare shaft pumps, air powered diaphragm pumps, lubrication pumps, centrifugal pumps, rotary gear pumps, helical rotor pumps, magnetic drive pumps, metering and dosing pumps as well as professional-grade hose, cord, and cable reels. Complementing this, Pumpseal provides customers with independent solutions for purchasing and specifying new pumps in addition to aftersales support delivered via in-house workshop facilities &/or on-site troubleshooting.
In 2022, after many decades of leadership, Pumpseal’s second generation directors decided it was time to exit the Business and enter the retirement phase of their lives. They engaged Johnsons Corporate to undertake a national sales campaign, which was tailored to offer Pumpseal’s revenues, customers, and suppliers as a synergistic bolt-on to an established trade buyer within the broader industry.
The National Sales Strategy
A well-known brand within its industry, having operated since 1969, Pumpseal represented an attractive opportunity for prospective purchasers to broaden or complement their existing offerings. It delivered turnover c. $6.0M+ and consistent gross margins. Pumpseal offered buyers the potential to create new revenue streams by leveraging its strong market position and long-standing supply relationships. Alternatively, an interstate operator could attain instant market share in NSW. Finally, it offered the opportunity to cross-sell complementary products &/or services to the loyal base of industrial customers.
Johnsons Corporate’s custom research & marketing focused on Australian import/distributors of industrial pumps as primary targets. Then, to maximise the pool of potential acquirers, secondary research made a comprehensive sweep of related sectors where an acquisition would present an opportunity for complementary diversification. Johnsons ran a proactive direct marketing campaign that uncovered 41 qualified, interested parties and secured Offer & Acceptance 16 weeks after going to market.
(Read more about how using a Specialised Mid-Market Business Broker Approach to selling your business could get you a better outcome – just like our client).
The Related Trade Buyer
Headquartered in Victoria and operating nationally, Pump Engineers has long specialised in the supply and installation of niche industrial pumping equipment. This acquisition served as the basis for a larger footprint in NSW, whilst also extending the company’s portfolio of leading equipment brands.
What Our Client Had to Say
"Throughout the divestment process Johnsons were always available and assisted as a healthy sounding board to navigate us along a path we had not previously walked. If you are considering a sale of your family business, we recommend talking to Johnsons Corporate. They were always available, knowledgeable, straight up and a pleasure to work with."Gary West, Director - Pumpseal Sales