HSBC UK & Amazon Filters: banking above and beyond

HSBC UK supports growth-orientated businesses with strong ambition and remains firmly invested in the UK’s industrial and manufacturing sectors – drawing on its international footprint to support global expansion.

So, when UK-based filtration business Amazon Filters was looking for a funding package to support its strategic growth plans, HSBC UK was the natural partner. But the bank aims to provide businesses with value beyond financing alone, offering additional support through sector expertise, building strong relationships, and providing connections to international networks.

The manufacturing business was founded over three decades ago by engineer Mike Pizzey. Today, his son Neil is the company's Managing Director. The business has banked with HSBC UK since its inception.

As a result of their expert filtration equipment knowledge and a wide network of industry contacts, Amazon Filters quickly established itself as a leading supplier of liquid and gas filtration equipment to both domestic and international markets.

Currently, Amazon Filters has a strong UK workforce and, alongside a UK hub, operates two overseas entities in Poland and Germany. But the company is looking to further capitalise on international opportunities, expanding into new territories and taking advantage of a fragmented, high-growth sector.

Alongside international expansion, Amazon Filters was also seeking funding to assist with its ownership structure. Having secured investment from the Business Growth Fund in 2018, the company felt ready to buy the shareholding back from BGF.

“We took an investor because we wanted to bring some third-party rigour into the business. We wanted a challenge and it worked exactly as we hoped. But it came to a point where it seemed the most sensible option was for the third party to sell their shares back to us,” says Pizzey.

An in-depth understanding of the dynamics and growth opportunities within the filtration systems sector enabled HSBC UK to clearly understand the true value of Amazon Filters’ business.

“HSBC UK is invested in supporting the industrial sectors, and can support event-driven transactions, says Rohit Moudgil, Head of Manufacturing & Industrials Sector, HSBC UK. “Amazon Filters is exactly the kind of business we want to work with, it is international in its outlook, and is well-positioned to grow in a fragmented global marketplace.”

“The focus on health and safety is only increasing across all aspects of our lives,” adds Moudgil. “The need for filtration systems is therefore also increasing at a global level, which underpins the growth opportunities for Amazon Filters .”

Amazon Filters has identified several high-growth opportunities especially in emerging markets – and HSBC’s global network means the bank is well-placed to support the business’ international ambitions.

Whilst the business exists within the process industry, its offering can be used to purify and sterilise fluids and drugs; tapping into the wider industrial space. Therefore, there is significant potential for growth as a result of the post-pandemic increase in hygiene standards. This is particularly true in emerging markets, where growing middle classes and overall development contribute to heightened health and safety expectations.

Despite an established presence in parts of Europe, Amazon Filters is looking to secure a foothold in some untouched and potentially lucrative markets – including America and South-East Asia.

“These can be challenging markets. There are lots of indigenous manufacturers in those territories who have the logistical and cultural advantages of being local,” explains Neil Pizzey, Managing Director, Amazon Filters. “But, we can compete by filling a gap in the market. Our positioning is different to the global multi-nationals.”

This gap is – in part – one created by affordability. Amazon Filters can offer international customers a well-established, UK-based company with a credible reputation. Whilst premium, multinational brands exist in the filtration space, mid-market operators such as Amazon Filters offer solutions at different price points.

“There are big opportunities out there for a company like us,” says Pizzey. “This is a £100 billion plus global sector, of which we currently hold a small market share. Therefore, the potential for significant growth is evident.”

Relationship Director Luke Howard has worked closely with Amazon Filters to develop a strong business relationship. This relationship meant the management team could confidently turn to HSBC UK when seeking a funding solution for their event driven financing needs. Understanding the management team’s vision is a key part of HSBC UK’s approach to supporting a business.

“In terms of the funding package, it was a pretty straightforward decision for us. We’ve got a long-term, stable, and trusting relationship with HSBC UK. Luke Howard, our Relationship Director, has always kept in touch and up to date with the business – investing time into understanding the niche elements of our sector,” says Pizzey.

Howard adds: “We are very excited to continue to work with the business – now, and in the future. Amazon Filters continues to grow each year, and the management’s ambitious vision going forward is something HSBC UK would like to support longer-term. The business is well-positioned to take advantage of growth opportunities.”

Indeed, HSBC UK’s relationship management and sector coverage proposition can be of benefit to businesses in all industries in the UK. HSBC UK has developed a hybrid relationship banking model which offers businesses sector-aligned coverage bankers, who not only understand the industry dynamics, but also know the local / regional geography and business ecosystem well. As a result, teams are well-positioned to spot opportunities across industry sectors.

The importance of cross-sector collaboration continues to grow – particularly when considering the volume of businesses transitioning to become tech-enabled and more sustainable.

“We are always asking how we can add value for our customers. Our coverage model is about connecting our customers to other potential customers, and to our global network, to open up a world of opportunity for them,” says Moudgil.