Business Partnership Corporate

Pen Tools Ltd acquired by Hereford Industrial Supply Co Ltd

Engineering

Engineers’ merchants

OLYMPUS DIGITAL CAMERA

OLYMPUS DIGITAL CAMERA

This well established business began trading in 1971 with the owner, who joined the company in 1976, leading a management buyout 15 years ago.

Mainly supplying trade customers, the business stocked a range of hand and power tools, woodworking machinery, as well as accessories including router cutters, moulding tools and circular saw blades. Also available were health and safety items including goggles, dust masks, clothing and safety footwear.

One of the most lucrative areas of the business, which was acquired in 2015, was the repair workshop, which accounted for some 15 per cent of the turnover but returned a far greater gross margin than the sale of new tools.

The repair workshop handled all makes of power tool as well as refurbishing second-hand woodworking machinery in order to bring items up to current European standards. The workshop, which also benefited from a fully computerised booking system, was an extremely profitable part of the business which could easily be expanded.