Arco enters new chapter of growth as H.I.G. capital agrees acquisition

Investment will accelerate innovation, deepen customer and supplier partnerships and expand Arco’s reach across the UK, Europe and North America.

Arco, the UK and Ireland's leading safety specialist, today announced that global investment firm H.I.G. Capital has acquired the business, marking the beginning of a new chapter in Arco’s 140-year history.

The transaction represents a significant investment in Arco’s future, providing the capital and strategic support to accelerate growth, expand its capabilities and further strengthen its position across the personal protective equipment (PPE), workplace safety and training markets.

Since his appointment as Chief Executive Officer in December 2022, Guy Bruce and his leadership team have delivered 38.4% EBITDA compound annual growth over four consecutive years. 

During this period, Arco has undergone a significant transformation, creating a more scalable and resilient business while reinvesting in its operations, customer proposition, product range and innovation capabilities. The transformation has been underpinned by a clear commitment to responsible growth and ESG, culminating in Arco achieving EcoVadis Platinum status – the highest available rating – recognising the company’s approach to sustainability.

Having established the platform, capabilities and infrastructure to realise its full potential, Arco now enters its next phase of growth from a position of strength. Its market-leading safety proposition, deep supplier relationships and specialist expertise provide a strong foundation for continued investment and expansion across the UK, Europe and North America.

Investing in Growth for Customers and Suppliers

The acquisition marks the beginning of a new phase of investment for Arco, with significant opportunities to broaden its market reach and further enhance the value it provides to customers and suppliers.

Arco intends to invest in expanding its proprietary and Arco-branded product ranges, while significantly broadening its portfolio of specialist safety training and services. The business will also have greater scope to pursue strategic acquisitions that complement its capabilities, extend its geographic reach and create new opportunities for customers and supplier partners.

Most importantly, the investment provides a foundation for Arco’s long-term ambition: to build an even stronger business for its customers, suppliers and colleagues while preserving the culture, values, expertise and commitment to safety that have defined Arco for more than 140 years.

A Strong Foundation for the Future

Thomas Martin, spokesperson for the Martin family, said:

"For generations, my family has been proud to lead Arco and to help build the business it is today. We have always seen ourselves as custodians of the company, with a responsibility to protect and develop it for the generations that follow.

"We have received unsolicited approaches from potential buyers in the UK and internationally over many years. However, this was never simply about finding a buyer. It was about finding the right partner for Arco’s next chapter – one who shared our ambition for the business and our commitment to its people, customers and suppliers.

"Arco is a stronger business today as a result of the professionalisation of its strategy, governance, Board and Executive team. Having considered the options carefully, we believe H.I.G. is the right partner to support and guide the next phase of Arco’s development. I am confident that we are entrusting the business to good hands."

Building a Market-Leading Safety Business

Guy Bruce, Chief Executive Officer of Arco, said:

"Over the past three and a half years, we have transformed Arco, strengthened our operations and built a scalable platform capable of supporting significant future growth. We now have the infrastructure, talent and capabilities to support a substantially larger business.

"The decision to partner with H.I.G. reflects a strong alignment of both value and values. They bring significant investment capability, proven expertise in distribution and a track record of working alongside management teams to build businesses for the long term.

"The safety landscape is changing rapidly, and our customers consistently tell us that they need a reliable, capable and compliant partner to underpin their safety strategies and help them achieve their own business objectives. Arco’s expertise, supplier relationships and understanding of workplace safety have never been more relevant.

"With H.I.G.’s support, we have an opportunity to build on those strengths: to deepen our customer and supplier partnerships, broaden our proposition, invest in our capabilities and pursue opportunities that will extend our reach.

"We have an ambitious vision for Arco. It is about growing and evolving the business while retaining the expertise, values and customer focus that have made it successful for more than 140 years. H.I.G.’s experience and commitment to the sector make them an exciting partner for the next stage of that journey, and I am energised by what we can achieve together."

Shared Ambition

H.I.G. Capital is a leading global alternative investment firm with a strong track record of partnering with businesses to support sustainable growth, operational excellence and market expansion.

The newly constituted Board of Directors will be chaired by Meine Oldersma, who brings extensive experience with H.I.G., significant knowledge of Arco from his previous role as a Non-Executive Director, and a strong track record working with multi-million-pound distribution businesses.

Having worked with Guy Bruce previously and more recently at Arco, Meine’s appointment as Chairman also provides valuable continuity as Arco enters its next phase of development.

The Board will also include Adam Taylor and Elliott Robinson of H.I.G., who led the firm’s investment team on the transaction, alongside Guy Bruce as Chief Executive Officer and Dan Carr as Chief Financial Officer.

Under the leadership of Guy and his management team, Arco will continue its transformation, with the support and investment of H.I.G., while remaining firmly committed to setting the benchmark for safety, service and training excellence across the industries it serves.