Scottish energy services firm Hydrasun saw its value rise to around £160 million after private equity firm Investcorp took a controlling stake in the business.
Management at the Aberdeen-based company used the investment announcement to lay out ambitious plans which include the creation up to 200 new jobs at home and abroad over the next four years, and an almost doubling of turnover to £175m.
Investcorp’s move has seen Equistone Partners Europe exit the business after a six-year association.
Exact financial details of the new tie-up have not been disclosed, but the deal is understood to put a value of around £160m on Hydrasun.
The business was valued at £75m when Equistone took up its position in 2007.
Investcorp, which is based in Bahrain, is believed to have taken a stake of about 80% in Hydrasun, with the remaining shares in the hands of the management.
Hydrasun which operates from five Scottish sites including Rosyth and Edinburgh, and which also has a location in Teeside is expected to record turnover of about £106m in the financial year to the end of next month, with earnings before interest, taxes, depreciation and amortisation of around £18m.
Chief executive Bob Drummond said the company was targeting turnover of £175m by the year to March 2016.
“We have had back-to-back growth of 30% in each of our two latest financial years and we see great opportunities ahead,” he added.
Staff numbers are just above 600 people around the world 350 of them in Aberdeen and he is predicting this could jump to as much as 800 by 2016.
Zones being targeted for high growth for Hydrasun include Brazil, west Africa and the Middle East.
Mr Drummond (57) has been with the firm for more than 10 years and is looking forward to leading the business in the next stage of its growth.
He said all seven directors are staying on after the deal, along with the second tier of 15 bosses below them.
Mr Drummond said there had been offers for the business from other energy service firms, but he felt it was important for Hydrasun to keep its independence.
“We are a close-knit team here,” he added.
Mr Drummond said investors in Investcorp included wealthy business people in the Middle East and they could help open doors in the area for his company.
Hydrasun a specialist provider of integrated fluid transfer, power and control services currently has a war chest of £20m for acquisitions, but the change in private equity backer means the firm has access to substantial extra funds if the right deal came along. The location of such an acquisition was most likely in the Middle East, said Mr Drummond.
Specialist corporate-finance adviser Simmons & Co International advised Hydrasun shareholders on the sale.
Managing director Nick Dalgarno said: “This deal underlines the strong private equity appetite for oilfield services investments.
“Hydrasun has been a fantastic success story and Bob and his management team deserve enormous credit for transforming the business from a North Sea distributor into a market-leading international service business.
“It is a good deal for all parties, securing an excellent return for Equistone, who invested in the business through the global financial crisis, while providing a strong platform for growth for Investcorp.
“The management team have also demonstrated their sustained confidence in and commitment to the business by investing in the next stage of its growth.”