PowerAir

Securing a long-term future for a specialist industrial business

Established in 1978, PowerAir is a leading supplier of premium air compressors in Northern Ireland, providing equipment alongside in-house maintenance and installation services.

The Lisburn-based business is the distributor for Ingersoll Rand compressors in Northern Ireland and has built a strong reputation for technical expertise, dependable customer service and long-standing relationships within the sector.

After many years of trading, the shareholders were considering the future of the business as one of the directors approached retirement.

The shareholders wanted to secure the future of PowerAir with the backing of a larger organisation, while providing the remaining shareholders with additional support and a clearer route towards an eventual exit in the years ahead.

Finding the right partner was therefore a key priority. The shareholders were looking for an acquirer that could provide the resources and support needed to strengthen the business while offering the flexibility for the existing leadership to remain involved and continue contributing to its future.

 “This is a huge opportunity for all of us within PowerAir. As the distributor for Ingersoll Rand compressors in Northern Ireland, we are very fortunate and excited to join the Teqnion portfolio and add to their group of compressed air companies.”

Johnny Camblin, Co-Owner, PowerAir

Securing a deal in challenging circumstances

PowerAir had been working with KBS Corporate for a couple of years, during which time a number of potential acquirers had been engaged with the business.

Despite generating interest, it took time to identify a buyer that represented the right combination of value, strategic fit and long-term support for the shareholders.

Dylan Bennett, Deal Executive at KBS Corporate, led the transaction and worked closely with the shareholders, their accountants and the prospective buyer throughout the process.

Two offers were received, with an alternative buyer submitting a strong financial proposal. However, Teqnion ultimately emerged as the preferred partner because of its ability to provide the shareholders with greater support, additional resources and a clearer route towards their longer-term objectives.

KBS played a particularly important role in navigating the commercial aspects of the transaction and due diligence process. Working closely with the shareholders’ accountants and the buyer, Dylan helped manage communications between the parties and provided commercial guidance to maintain momentum and protect the relationship throughout negotiations.

The transaction also required careful consideration of the earn-out structure. KBS worked with both parties to develop an arrangement that provided Teqnion with appropriate protection while giving the shareholders a realistic opportunity to achieve the full value of the deal within a reasonable timeframe.

“Dylan has been excellent throughout the entire process, providing detailed updates and advice every step of the way. His professionalism and commitment cannot be overstated.”

Johnny Camblin, Co-Owner, PowerAir

Choosing the right partner over the highest offer

The shareholders had a clear understanding of what they wanted from a transaction, and financial value was only one part of their decision. Having spent a significant amount of time exploring the market, they were looking for an acquirer they could trust and work with comfortably, particularly given the personal significance of the transaction.

Although another party submitted an offer, Teqnion ultimately stood out because of the confidence it gave the shareholders in the future. The relationship developed quickly during negotiations, with an open and pragmatic approach from both sides helping to establish a strong rapport.

This was particularly important as the transaction was designed to support the retirement of one director while giving the remaining shareholder a clear path towards their own eventual exit.

The shareholders decided to prioritise the quality of the partnership and the certainty it provided over simply accepting the highest financial offer. The agreed structure gave them the opportunity to realise value from the business while retaining the potential to benefit from its continued performance.

Ultimately, the shareholders felt Teqnion offered the right combination of commercial terms, trust and long-term support to give them confidence in the future of the business.

Joining Teqnion’s growing compressed air group

PowerAir became the 10th company acquired by Teqnion through KBS Corporate in less than three years.

However, unlike Teqnion’s previous acquisitions through KBS, PowerAir joins an established mini-group within the wider organisation focused specifically on the compressed air sector.

The group already includes Avelair, another KBS-advised acquisition completed two years earlier, creating opportunities for the businesses to collaborate, share knowledge and benefit from group-wide synergies.

For PowerAir, the acquisition provides access to the wider resources and capabilities of Teqnion, allowing the remaining shareholder to focus on areas where they can add the most value while benefiting from additional group support.

The deal also provides an opportunity for the shareholder to realise value from the business while continuing to work within the company and retaining the potential to benefit from its future growth through the agreed earn-out structure.

For Teqnion, PowerAir provides an important geographical presence in Northern Ireland and strengthens its growing compressed air offering.

“PowerAir gave us a geographical footprint where we had no presence. We got a very good rapport with Johnny at PowerAir and felt he, the team and our current compressed air companies could do a lot of good things together.

“Our hope is that we can transfer knowledge in all directions, free up some time for Johnny to do what he’s best at, and through that grow the company.”

Daniel Zhang, CXO, Teqnion

Building a stronger platform for future growth

Teqnion’s strategy is to build a group of specialist businesses that can retain their local expertise and customer relationships while benefiting from collaboration and economies of scale.

The addition of PowerAir strengthens the group’s presence within the compressed air market and creates opportunities for closer collaboration between its specialist businesses.

For the PowerAir shareholders, the transaction provides greater peace of mind about the company’s future, with the backing of a larger organisation able to provide additional resources and take on functions that previously sat with the existing leadership team.

This allows the remaining shareholder to focus on growing sales and optimising the business’s operations, while continuing to play an active role in its development.

The transaction therefore delivers a positive outcome for both parties: PowerAir gains the support and resources required to build for the future, while Teqnion strengthens its compressed air platform with an established business and experienced team.

“We can’t thank Dylan and all the team at KBS enough for all the hard work and vision to provide us with an introduction to Daniel at Teqnion. His approach has been a breath of fresh air and very reassuring.”

Johnny Camblin, Co-Owner, PowerAir