Barrier Group has acquired a 49% stake in a North East-based rubber product manufacturing company.
The Wallsend-based company has bought the share in Tyneside’s Aquaseal Rubber with the aim of helping to expand the business’ presence in to wider markets.
Aquaseal Rubber, which is based in Longbenton, is a family business run by managing director Jason Armstrong and his father, Eddie Armstrong. The company primarily manufactures rubber coatings, tubes for road cleaning equipment, and fenders for remotely operated vehicles (ROV).
The acquisition of a stake in Aquaseal Rubber comes as part of a broader move by Barrier to expand the business and move into new markets. Existing customers of Barrier will also benefit from the additional range of services provided by the acquisition.
Barrier was advised by Mark Adams, corporate finance partner of Hay & Kilner Solicitors, making it the third Barrier project to be completed by the Newcastle-based law firm.
Barrier Group was formed in 1975 to carry out painting of structures to be installed as part of the growing North Sea oil industry. The company has gone on to complete more than 200 major contracts, totalling millions of square metres of surface protection and has worked for most of the world’s major oil companies.
More recently the company has expanded its operations beyond the oil sector, and prior to the Aquaseal Rubber acquisition, began providing passive fire protection, metal spraying, powder coating and sub-sea insulation across the aerospace, marine and offshore renewables energy sectors.
Jason Armstrong, managing director of Aquaseal Rubber, said: “Having been a family run company since 1972, we feel our longevity and success speaks for itself. However, to have a major player in North East industry such as Barrier seeking to work with us is a massive boost to the company, and reiterates our success.”
Robert Bowles, chairman of Barrier Group, said: “Utilising the skills and tools Aquaseal Rubber provides is an integral move for Barrier in the process of expansion, and diversifying our services.”