Maven Capital Partners has invested £7.5million in RMEC Ltd. in the private equity firm’s seventh transaction in nine months, taking its recent investments in oil services companies that are active in the North-east of Scotland to £30 million.
Forfar-based RMEC, a mechanical and hydraulic engineering company specialising in the manufacture, maintenance, repair, testing, recertification and rental of well services equipment for the oil and gas industry, has 20 staff and a turnover of £9 million. The investment will enable RMEC to fast-track its growth in the North Sea, expand its rental fleet, further develop its considerable workshop and storage facilities as well as bolster the management team.
Jock Gardiner, partner at Maven, said: “There is a major opportunity for RMEC to capture a significant slice of a rapidly growing market and our investment will ensure that the company is well positioned to do so. This transaction underlines our ability to forge relationships with companies that result in strengthened management teams which are capable of delivering strategic development and operational growth.
“This is Maven Aberdeen’s seventh new energy services sector equity investment in nine months, demonstrating the strong pipeline of M&A activity in oil and gas and our commitment to helping smaller oil services firms in the North-east flourish.”
RMEC will be led by new managing director, Bryan Fagan, who was formerly part of the management team which successfully sold Dominion Gas to Praxair. Prior to joining Dominion Gas as sales director, Fagan directed sales for Phoenix Polymers. A chemistry graduate of the University of Aberdeen, Fagan is originally from Fife.
Major RMEC shareholders and founders, Alan Ramsay and Stuart Mathers, will remain as part of the management team which will lead an ambitious growth strategy to position the business as a leader in the rental, sale and service of equipment for well services.
Fagan said: “With an excellent workforce, established customer base, enviable long-term contracts, first class testing and storage facilities and well-equipped workshop in acres of land south of Aberdeen, RMEC has a strong platform on which to build. 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.”
Corporate finance specialists to the energy sector, Simmons & Company International Limited advised RMEC’s founders on the deal. Nick Dalgarno, managing director of Simmons in Aberdeen said: “This is an excellent deal for the founders and the new investors which realises the value of the current business and sets the company up for significant future growth. It underlines our ability to support fast-growing local businesses and the business will benefit from the partnership with Maven, which has a proven record in working with management teams to deliver strategic goals.”
RMEC Limited is a mechanical and hydraulic engineering company established in 2004 and based near Forfar. It specialises in the maintenance, pressure testing, recertification, manufacture, build, supply and rental of well services equipment to the oil and gas industry. It also undertakes refurbishment and hydraulic work in the agricultural, plant, marine and forestry sectors.
Press Release, April 09, 2014