Hull-headquartered workplace safety specialist Arco has been acquired by global investment group H.I.G. Capital, ending more than a century of family ownership as the business prepares for further expansion in the UK and overseas.
Financial terms have not been disclosed. Arco said the investment will provide additional capital and strategic support for growth across personal protective equipment, workplace safety and training.
The business traces its history back around 140 years and has developed into a major supplier of safety equipment, workwear and specialist services across the UK and Ireland.
Chief executive Guy Bruce and the existing management team will remain in place. Arco said its leadership has delivered compound annual EBITDA growth of 38.4% over four consecutive years while investing in operations, products and innovation.
The deal marks a significant governance change for a company closely associated with Hull and its founding family through successive generations. Its move into private-equity ownership brings a different source of capital behind the next phase of expansion.
H.I.G. manages around $75bn across private equity, credit, real estate, infrastructure and other strategies. It has remained active in UK transactions, including the separate acquisition of fulfilment specialist Torque announced this week.
Arco expects to broaden its proposition and extend its reach in the UK, Europe and North America. Workplace safety is a market shaped by regulation as well as operational risk: customers need equipment and services that satisfy safety standards while maintaining dependable supply across large workforces and multiple sites.
Compliance capability has consequently become more important alongside distribution. Industrial, construction, manufacturing and infrastructure customers increasingly expect suppliers to combine protective equipment with training, technical support and assurance around changing workplace requirements.
Procurement practices are changing too. Large organisations are consolidating supplier bases in some categories, using digital purchasing systems and requiring more information on product provenance, sustainability and supply-chain resilience.
Scale can be valuable in that environment. Distributors need broad product ranges, inventory availability and specialist knowledge while managing working capital, warehousing and logistics costs.
Arco said recent investment has created a more scalable platform and strengthened supplier relationships. The business has also highlighted its environmental and social performance, including EcoVadis Platinum status.
The newly constituted board will be chaired by Meine Oldersma, who has previous experience with H.I.G. and has served as a non-executive director at Arco. H.I.G. representatives Adam Taylor and Elliott Robinson will join the board alongside Bruce and chief financial officer Dan Carr.
Continuity in management gives H.I.G. the opportunity to back an established operating team rather than rebuilding the leadership structure after completion. The commercial test will be whether additional capital can accelerate growth from Arco’s existing platform while retaining the capabilities developed under family ownership.
Industrial distribution has remained attractive to private-equity investors where businesses combine recurring customer requirements, specialist expertise and opportunities for consolidation. Workplace safety fits that profile because regulatory obligations create underlying demand even through weaker industrial cycles.
Arco enters private-equity ownership with its UK management intact but a materially different capital base. Future expansion will determine how far that ownership change alters the scale and geographic mix of a business that remains deeply rooted in Hull.
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