A SPECIALIST hydraulic and mechanical engineering firm based in rural Angus has been bought over in a £14 million deal.
Glasgow-based Maven Capital yesterday said it was investing £7.5m in support of a management buy-out of RMEC Limited, based in Cotton of Pitkennedy.
The firm was established in 2004 and specialises in the maintenance, pressure testing, recertification, manufacture, supply and rental of well services equipment to the oil and gas industry.
The company, which employs 20 staff and turned over £9m in the last year, has also operated a mobile service since 2008 supplying on-site hydraulics support to the agricultural, plant, marine and forestry sectors in addition to its core market.
Maven yesterday said the deal for RMEC, which has taken its total investment in the energy services sector to more than £30m in the past nine months alone, had been completed by a syndicate comprising Maven client venture capital trusts and a number of high net worth investors.
The private equity firm said the investment in RMEC would help fast-track the company’s growth in the North Sea oil and gas sector by expanding its rental fleet and allowing the further development of the firm’s workshop and storage areas.
Former Phoenix Polymers executive and Dominion Gas sales director Bryan Fagan has been brought on board as new chief executive and will lead the new growth strategy alongside RMEC founders and major shareholders Alan Ramsay and Stuart Mathers, who will remain as part of the management team.
“RMEC has a strong platform on which to build,” Mr Fagan said last night. “This capital injection will fast-track our aim of becoming a major player in well services, offering a competitive solution with a best in class, personalised service.”
Maven Capital partner Jock Gardiner said he expected RMEC to grow rapidly.
“RMEC is operating in a rapidly growing market and has the opportunity to capture significant market share,” he said. “The business has built up an excellent reputation in the market for the speed, flexibility and quality of its service.
“Its comprehensive range of tools are capable of performing work to the highest safety and reliability standards and this has led to the business securing a number of contracts with large blue-chip clients.”
The Aberdeen office of corporate finance specialists Simmons & Company advised RMEC’s founders.
Managing director Nick Dalgarno said: “This is an excellent deal for the founders and new investors, realising the value of the current business and setting the company up for significant future growth.
“It underlines our ability to support fast-growing local enterprises and RMEC will undoubtedly benefit from this partnership with Maven, which has a proven record in working with management teams to deliver strategic goals.