Global-leading energy production technology services company Proserv has further bolstered its subsea manufacturing capabilities and specialist integrated services after completing the acquisition of major engineering player KRG Industries Ltd.
Proserv has acquired the entire share capital of UK-based KRG Industries (KRG) from majority shareholder Torishima Pump Mfg. Co. Ltd, (Torishima) in Japan.
With a 35-year track record, KRG is a well-established provider of precision engineering services to the oil & gas and aerospace & defence industries. Using a modern fleet of high specification equipment, the company provides a broad suite of services including machining, welding, inspection and testing to an increasingly international base of blue-chip customers including oil and gas original equipment manufacturers (OEMs), oilfield service companies and defence contractors.
The deal comes just eight months after Proserv acquired Australian-headquartered Velocious, a pioneering subsea intervention and tooling company, and integrated its 20 members of staff. Proserv also took on US company, Total Instrumentation & Controls (TIC) towards the end of 2012, adding a further 300 staff to the company.
The latest acquisition, which includes integrating all 170 personnel based at KRG’s Coatbridge headquarters in Scotland and its Stockton-on-Tees facility, sees Proserv increase its talent pool to over 2,200 employees with all existing KRG management continuing to run the day-to-day operations as part of the Proserv organisation.
It also reinforces Proserv’s position as a leader in the engineering, manufacturing, testing and after-market servicing of specialist and highly-critical subsea equipment.
David Lamont, Proserv’s chief executive officer, said: “Our plan for growth is to invest in complementary world-class technologies and build on our existing range of value-added products and services. The acquisition of KRG is a perfect strategic fit for Proserv. They bring a broad range of technical skills and experience but, most importantly, they share our core values and ambition to be the provider of choice to our customers and together, as one company, we are even stronger.”
“It will be an exciting new partnership that enhances our integrated capabilities and creates significantly more capacity to develop our international business. It will also bring further positive benefits for employees and give them the opportunity to become involved in a broader, more diverse range of projects as well as considerable benefits to our fast-growing portfolio of clients through the delivery of an enhanced service capability.”
Proserv, which operates worldwide across several regions, has a 40-year track record in delivering bespoke technologies and services for the energy industry, particularly in the drilling, production, subsea and marine market sectors.
The company has experienced exceptional growth over the past 12 months particularly in the subsea services sector. Last year, Lamont won the industry accolade for Private Equity Backed Business at the EY UK Entrepreneur of the Year awards. He was praised for the company’s impressive acquisition strategy, its geographical reach and the opportunities for further expansion. During his two years at Proserv, the company has recorded annual organic growth rates of 28%.
Nick Dalgarno, managing director of Simmons & Company International in Aberdeen – corporate finance advisors to the energy industry – advised Torishima on the transaction. He said: “This is an excellent deal for both parties, providing international opportunities for KRG management and staff while securing the supply chain for rapidly-growing subsea firm Proserv, enhancing their competitiveness in an increasingly tight market.”