RYCO Hydraulics appoints Deloitte to find majority investor

23 May 2019 - 05:01 am UTC

by Gabriele Rutkauskaite in Sydney

RYCO Hydraulics, a privately held Melbourne, Australia-based hydraulic hose and fittings manufacturer, has appointed Deloitte to find a majority stake buyer, according to two sources familiar with the situation.

 

Teasers have not been sent out yet and the process is in the early stages, the first source said. The deal is not expected to be finalized until at least the end of the year, he added.

 

RYCO is seeking to find a new investor as some shareholders are looking to retire, the first source said. Started in 1946, RYCO is owned by the Morrison family and its Chief Executive Officer Leigh Morrison is willing to continue to be involved in day-to-day operations, according to the first source.

 

The company has annual revenues of circa AUD 120m (USD 82.98m). It will consider local and international strategic and financial investors that could bring some “complementary strengths,” the first source said, without elaborating further. RYCO has a large offshore presence with offices, warehouses and assembly centers in the US, Europe and Asia and the company is expecting to attract international interest, he continued.

 

Germany-based ContiTech, Sweden-based Atlas Copco, Japan-based Bridgestone Corporation, Ohio-based Parker Hannifin and Colorado-based Gates Industrial Corporation are among RYCO’s larger industry peers that could be interested in acquiring the company, the first source said.

 

RYCO is a solution-based supplier providing clients with a complete range of services including on-time delivery, solving engineering problems, cost reduction activities, onsite hose management systems and asset management. The company has been providing services to mining, oil and gas, agriculture, marine and industrials sectors, according to its website.

 

RYCO Hydraulics is held by Australasian Steel Products (ASP), a registered company, that does not have any other interests and shareholders are the same, the first source said

 

RYCO and Deloitte declined to comment.