Stockon-on-Tees-based px group has acquired a massive Hull industrial complex which is home to companies including BP and INEOS.
The 370-acre Saltend Chemical Park has been bought from BP.
Px intends to work with existing and new operators to develop and expand the park, which was established in 1914 and has been owned by BP for the last 50 years.
As part of the deal about 50 BP jobs have transferred employment to px.
The complex is home to a cluster of businesses that together manufacture more than a million tonnes of chemical products a year. These are used in everyday items including clothing, paints, pharmaceuticals and packaging.
Companies operating at the site include Air Products, BP, INEOS, Nippon Gohsei, Perenco, Vivergo and Yara.
px chief executive officer Mark Kenrick said: “This marks a major new chapter in the development and diversification of our business. The provision of industrial utility services on a large COMAH (Control of Major Accident Hazards Regulations) site is a natural extension of our core competence in gas processing, power plant and midstream infrastructure operations. Our huge experience operating and maintaining plants on sites like this and in the processes carried out, makes this an ideal opportunity for px.
“Over the coming weeks we will focus on a safe transition with uninterrupted supply of services and utilities to our on-site partners. Our drive will then be to develop the park further and attract more manufacturers to benefit from the unique competitive advantages it offers, whilst, of course, ensuring we provide a first rate service to the existing site partners.”
Square One Law advised px Group. Mark Lazenby, head of the firm’s corporate team, said: “This deal has been transformational for px. It is already known in the marketplace for its strong track record operating critical infrastructure and this transaction was the logical next step to differentiating its offer, as Saltend Chemical Park is one of the UK’s most important industrial complexes.”
Corporate partner James Bryce added: “The corporate team has been delighted to assist in the delivery of such a complicated and important transaction which has been achieved through the strong working relationship between px group management, its shareholders and our team. There was a synergy of combining the extensive knowledge of the px group team with our commercial experience that created an exceptionally joined-up way of working.”
In March 2016, px group secured investment from Blue Water Energy, a specialist private equity energy fund, to support a strategic growth plan. The Saltend purchase is the first expansion through acquisition.