Strategically repositioning a business
A Glynwed case study

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Page 2: Growing the business

Glynwed 6 Diagram 1Formed in 1939, Glynwed was originally a metal manufacturing business. During the 1960s it took over Allied Ironfounders and doubled in size, acquiring the basis of a consumer and foodservice equipment business. During the 1980s and early 1990s there were a number of acquisitions and the structure of the business encompassed seven very different divisions.

During the mid-1990s some parts of this business were clearly developing in growth markets. Many of the other parts of the business were operating in markets that were becoming mature, and offered little potential for expansion and development. Since 1997, under new management, the Group has been transformed. This has occurred through a process of divestment – selling metal distribution businesses, building and foundry products and metals processing businesses.

Running parallel with these disposals has been a process of acquisition. This was designed to create a dynamic international engineering business focused upon two areas:

  1. Pipe Systems - Glynwed Pipe Systems manufactures and supplies high performance pipework systems and products for the transmission of liquids and gases. The systems use a wide range of innovative materials and include UK brand names such as Durapipe and Viking-Johnson.
  2. Glynwed 6 Image 3Consumer & Foodservice Products -Consumer products include top quality range cookers including the world’s best known range cooker AGA, while the foodservice products relate to demand for commercial cooking and refrigeration equipment. This transformation has been made possible by selling businesses that accounted for around two thirds of the Group’s 1996 turnover, while over the same period acquiring other businesses.

The result has been to create:

  • the world’s largest plastic pipe systems business
  • a foodservice equipment business which is the UK’s market leader, and which, with a presence in US markets, is developing as an international business.

Glynwed | Strategically repositioning a business
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