Two hundred-year-old Hayward Tyler announced on Monday it is buying the almost 150 year old Peter Brotherhood for US$15mln (£9.7mln) from Dresser-Rand, an arm of German industrial giant Siemens.
It is the third time the firm has changed hands since the turn of the century.
It was bought by the US-based firm in 2008 for £31mln, having been acquired by a management buy-out team led by Stephen Fitzpatrick in 2003 from another US-based engineering firm.
Hayward Tyler chief executive, Ewan Lloyd-Baker, said: “Over the last few years it [Peter Brotherhood] took the name off the door and became the Peterborough business of Dresser Rand.”
The plan now, he said, is to bring the brand back to the forefront, and to get back to building on its heritage.
“Great British brands, particularly from an engine perspective have got a kudos for reliability and quality around the world and often we in the UK undervalue our engineering heritage and what it means to our customers in overseas countries,” Lloyd-Baker said.
Peter Brotherhood specialises in making steam turbines and gas compressors, and much of the company's work involves the efficient and environmentally-friendly conversion of energy.
“If you talk to end users and look at its install base, it’s got the powerful brand that still means a lot to customers,” he added.
The group will keep the companies as two separate “stand-alone” entities, but should see a number of benefits by linking the two.
Peter Brotherhood provides Hayward Tyler with access to a range of new customers, including Keppel Shipyard, while deepening its existing relationships such as the one it has with Rolls-Royce.
The two other main areas that excited Lloyd-Baker were South Africa and far-east Asia, where Hayward Tyler already has a footprint.
Here, Lloyd-Baker said, the two companies should see a big opportunity to cross-sell products.
Additionally, by having the two under one group, it should reduce office costs and increase the access to market.
Indeed, the company has already said there may be the opportunity to sell and then lease back an 11.5 acre site in Peterborough owned by Peter Brotherhood.
Lloyd-Baker said the acquisition has “been on the radar screen for some time”, due to the similarities between the two businesses.
“RBS have been supportive of us and were very keen to get involved with this deal,” Lloyd-Baker said.
Not only has it provided enough for the acquisition, however, it has extended Hayward Tyler’s facility as well, giving it the scope to plough investment into the company where needed.
He added that the banks are always willing to lend to companies with a good track record and a clear vision on how to drive growth.
Hayward Tyler has been revitalised in the last five years, allowing it to “punch above its weight” according to Lloyd-Baker.
“We have invigorated Hayward Tyler by making significant investment in developing a great business, and that what we want to do with Peter Brotherhood,” he said.