Tekmar Group plc, a provider of protection systems for subsea cable, umbilical and flexible pipes and offshore engineering services, has signed a deal to buy Subsea Innovation.
Subsea Innovation is supplies engineered equipment and technology used in the installation of subsea equipment for the offshore oil and gas market. Its products include large equipment handling systems, which operate on the back of installation vessels; including cable, pipeline and SURF (subsea umbilical riser and flowline); pipeline repair clamps, which protect major oil and gas pipelines, and equipment for the construction of offshore oil and gas projects.
Tekmar will pay up to £4 million to buy Subsea Innovation from its founder Gary Ritchie-Bland. The proposed acquisition is subject to shareholder approval.
“Subsea Innovation, which currently operates in the global oil and gas market, will bring world-class engineering in the design, development and manufacture of back deck equipment and subsea pipeline repair clamps (“EPRC”) to Tekmar’s portfolio, along with a blue chip client list and a skilled engineering team,” Tekmar said.
The proposed acquisition includes the purchase of a high specification 40,000 sq ft manufacturing and office facility in Darlington, and its fixtures and fittings, which, combined, amount to approximately £3 million in fixed assets. This property will become Tekmar Group plc’s headquarters and provide additional land for future expansion. Subject to grant and local planning approval, this site would provide the opportunity to reduce overheads across the Group and improve working practices by consolidating multiple manufacturing sites and offices into one location.
Subsea Innovation 27 staff, and management team will remain with the business post-acquisition. None of the directors of Subsea Innovation will be joining the board of Tekmar.
‘New sales opportunities’
Alasdair MacDonald, Non-executive Chairman of Tekmar, said: “Our vision is to continue building on Tekmar’s position as the global leader in subsea cable protection systems in the offshore wind market and to become the partner of choice for the supply of subsea protection equipment to the global energy markets. The proposed acquisition of Subsea Innovation will bring new capabilities, new markets and strong cross-selling opportunities to the Group.
“The Independent Directors are confident that Subsea Innovation’s blue chip global client base will open up new sales opportunities for our offshore wind business. Equally, we expect Subsea Innovation to benefit from Tekmar’s trusted name in offshore wind, opening up sales and supply chain opportunities for the previously wholly oil and gas focused business.”
Dave Thompson, Managing Director of Subsea Innovation, added: “The team at Subsea Innovation is hugely excited by this move and view it as the start of the next phase in the development of our business. The oil and gas market is already showing clear signs of recovery; Tekmar’s backing and its global offices and support functions would enable us to capitalise on this upturn and make strides towards our goal to become a global leader in both oil and gas and offshore wind.”
Subsea Innovation will continue to trade under its own name and remain as a separate legal entity. There will be no disruption or change for its customers and all current employees intend to remain with the business.