Why This Matters to Distributors: Arco’s acquisition gives the U.K. safety distributor financial backing to pursue a broader growth strategy built around digital investment, expanded products and services, and additional acquisitions. The deal could extend Arco’s reach beyond its existing U.K. branch network as it looks for complementary businesses in the U.K. and other markets.
H.I.G. Capital has acquired U.K. safety equipment distributor Arco Limited, with plans to invest in the company’s digital capabilities and pursue additional acquisitions as part of its growth strategy.
Terms of the transaction were not disclosed.
Hull, England-based Arco distributes safety wear and protective equipment and provides safety services and training. The company serves customers in infrastructure, defense, utilities, and health care and operates a branch network across the U.K.
Arco said Sept. 30 that under H.I.G.’s ownership it plans to expand its product and service offerings, invest in its digital business and pursue acquisitions of complementary companies in the U.K. and internationally.
“We are delighted to welcome H.I.G. as our new investment partner,” Arco CEO Guy Bruce said. “H.I.G. shares our ambition for the business and brings significant experience helping companies grow, both in the UK and internationally.”
Bruce said the company plans to invest in its employees and capabilities while broadening its products and services.
Founded in 1884, Arco has operated in the safety market for more than 140 years. In addition to distributing safety products, the company provides services including training and product auditing.
Adam Taylor, managing director in H.I.G.’s London office, said the investment firm plans to use its operational resources, international network and mergers and acquisitions capabilities to support Arco’s expansion.
“Arco is a strong fit with H.I.G.’s strategy of partnering with high-quality businesses where we can use our operational resources, international network, and M&A capabilities to support the next phase of growth,” Taylor said.
Miami-based H.I.G. Capital manages $75 billion in capital. Founded in 1993, the investment firm has invested in and managed more than 400 companies worldwide and currently has more than 100 companies in its portfolio, according to the firm.
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