The Duncan family, founders of hydraulic hose franchise platform, Pirtek Fluid Transfer Solutions, has acquired Pirtek USA.
The acquisition of Pirtek USA creates further synergies across the Pacific, while strengthening Pirtek’s existing partnerships in Africa, Canada, China Mongolia, New Zealand and Singapore.
"As a group, this will allow Pirtek to broaden the customer base with a high level of corporate strength and stability, while increasing market share, setting long term objectives and outcomes that we can all be proud of,” said Pirtek International Director, Glenn Duncan in a statement.
He told BRW that the purchase is significant because of the huge growth potential of the US franchise.
“You can quite quickly see 300 stores, 5000 mobiles and you really haven’t scratched the surface,” he said.
He estimated that the US division will generate annual earnings growth of 20 per cent, a result which is no longer possible for the company to achieve in Australia.
The Pirtek Franchise model, which was established in Australia in 1980 by the Duncan family, has been recognized as one of the premier franchising formats around the world.
There are over 400 PIRTEK Service and Supply Centres and Mobile units globally, 97 of those in Australia. Pirtek USA opened its 50th Centre in Milwaukee earlier this month.
The purchase follows Pirtek Fluid Transfer Solutions’ recent unsuccessful attempt to buy back Pirtek Europe Holdings. Private equity firm the Halifax Group was the eventual successful party in that deal.