Major investment in Arco is a vote of confidence in Hull and East Yorkshire

HULL – One of Hull and East Yorkshire’s great home-grown businesses is beginning a major new chapter after global investment firm H.I.G. Capital acquired Arco, bringing fresh investment and ambitions to expand the company across the UK, Europe and North America.

The deal brings more than 140 years of ownership by the Martin family to a close and follows a remarkable period of transformation under Arco Chief Executive Officer Guy Bruce and his leadership team.

For Hull and East Yorkshire, there is plenty to celebrate. A business built here over five generations has attracted substantial international investment, with plans to grow its product ranges, expand specialist safety training and services, pursue acquisitions and take Arco into new markets.

Arco says the investment will provide the capital and strategic support to accelerate growth while strengthening its position across personal protective equipment, workplace safety and training.

The story begins with the Martin family, whose stewardship has taken Arco from its Victorian origins to its position today as the UK and Ireland’s leading safety specialist.

“We have always seen ourselves as custodians of the company, with a responsibility to protect and develop it for the generations that follow.”

Thomas Martin

Thomas Martin, speaking for the Martin family, described generations of the family as custodians of Arco, responsible for protecting and developing the company for those who came after them.

“For generations, my family has been proud to lead Arco and to help build the business it is today,” Thomas Martin said. “We have always seen ourselves as custodians of the company, with a responsibility to protect and develop it for the generations that follow.”

Perhaps most significantly, Thomas Martin revealed that the family had received approaches from potential buyers in Britain and overseas for many years but had resisted selling simply for the sake of finding a buyer.

“This was never simply about finding a buyer,” Thomas Martin said. “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.”

The decision also represents a strong endorsement of the transformation undertaken by Arco’s current management.

Since Guy Bruce became Chief Executive Officer in December 2022, Arco says his leadership team has delivered EBITDA compound annual growth of 38.4 per cent over four consecutive years.

“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”

Guy Bruce, CEO

During that period, the business has undergone substantial change, investing in its operations, customer proposition, product range and innovation capabilities while creating what Arco describes as a more scalable and resilient business.

Its work on responsible growth and sustainability has also resulted in Arco achieving EcoVadis Platinum status, the organisation’s highest available rating.

Guy Bruce believes the transformation has created the foundations for considerably greater growth under H.I.G.’s ownership.

“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,” Guy Bruce said. “We now have the infrastructure, talent and capabilities to support a substantially larger business.”

The ambitions set out in the announcement are substantial. Arco intends to expand its proprietary and Arco-branded products, significantly broaden its specialist safety training and services and pursue strategic acquisitions capable of extending both its capabilities and geographic reach.

That could ultimately see a company with its roots in Hull growing much further across the UK, Europe and North America.

Guy Bruce said the partnership with H.I.G. reflected an alignment of both “value and values”, with the investment firm bringing significant financial capability and experience of working with distribution businesses.

“We have an ambitious vision for Arco,” Guy Bruce said. “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 involvement will also bring changes at board level. Meine Oldersma, who has previously served as a Non-Executive Director at Arco and has experience working with H.I.G., will become Chairman.

The new Board will also include H.I.G.’s Adam Taylor and Elliott Robinson, alongside Guy Bruce as Chief Executive Officer and Dan Carr as Chief Financial Officer. Arco says Guy Bruce and the existing management team will continue to lead the company’s transformation with H.I.G.’s investment and support.

For Hull and East Yorkshire, the acquisition marks a significant moment in a remarkable local business story.

The Martin family has spent more than 140 years building Arco and has chosen to hand that inheritance to an investor it believes can take the company through its next period of development. Thomas Martin says the professionalisation of Arco’s strategy, governance, Board and Executive team has left the company stronger and that the family is confident it is “entrusting the business to good hands.”

Guy Bruce and the current management team have already overseen substantial growth and transformation and will now have significant investment behind their ambitions to build a much larger business.

A company built in Hull over five generations is preparing to expand its reach across Britain, Europe and North America.

That is a considerable achievement for the Martin family, Arco’s management and its colleagues, and another powerful demonstration that businesses built in Hull and East Yorkshire can compete and grow on an international stage.