Hydraulics engineering firm Norson Power has been acquired by mechanical services company EnerMech Ltd in an £11 million deal.
Founded in 1974 in Aberdeen, Norson Power provides hydraulic pipework installation and designs and manufactures hydraulic equipment for the oil, gas and marine industries.
EnerMech has acquired the entire equity held by the management team, clients of Aberdeen Asset Management Ltd, and other individual shareholders. Norson employs 90 staff in Aberdeen and Houston and in the last financial year posted revenues of £14 million with £2.3 million EBITDA.*
Aberdeen-based EnerMech, which provides mechanical services, cranes and lifting equipment, hydraulics, equipment rental and training services to the offshore oil and gas sector, said Norson’s core business will complement EnerMech’s existing products and services and will take the group’s 2010 revenue to more than £60 million.
In addition EnerMech will invest a further £2 million to roll out Norson’s hydraulic services to EnerMech bases in Dubai, Singapore, West Africa and Perth, Australia.
The acquisition of Norson and the additional growth capital to expand Norson’s geographic footprint brings the total equity investment in EnerMech by Lime Rock and the company’s management team to £41million.
EnerMech managing director, Doug Duguid, said: “The acquisition of Norson and its staff and is a key development in the growth of EnerMech. Norson is a well run, profitable business, with the potential for further growth and this acquisition will take EnerMech to £60 million annual turnover just two years after we started up in business.
“Synergy is an over-used word but in this case Norson’s expertise and products dovetails extremely well with our existing business lines. Norson has a lot of clients in the drilling and subsea construction sectors which we can tap into, while its reputation for designing and building top class hydraulic systems will help us attract new customers in international markets.
“The company is a major supplier of hose and fluid connectors which will complement our own hose and fittings business. The acquisition also boosts our expertise in hydraulic engineering and positions EnerMech as being able to offer a much more comprehensive range of services than our competitors.”
Norson’s base in Houston will also be utilised to extend EnerMech’s reach in North America and the Gulf of Mexico and to support existing clients and contracts in Brazil.
Mr Duguid said Norson’s management team, led by managing director Gordon Telfer, would remain in situ and is viewed as a key element in growing the business. All staff will transfer to EnerMech’s headquarters in Howes Road, Aberdeen, later in 2010.
Norson Power managing director, Gordon Telfer, said: “EnerMech has the capital resources and international expertise which provides Norson with the opportunity to penetrate new markets. It’s envisaged our workforce will increase and the deal brings exciting opportunities for existing and future employees.”
Note to Editors
*EBITDA: Earnings before interest, taxes, depreciation and amortisation.
EnerMech Ltd was formed in April 2008 and offers a safer, more customer-focused, responsive service with lower costs in the mechanical services sector within the energy industry, while delivering a much greater level of engineering and technical support than competitors can offer.
The company specialises in the supply, maintenance and engineering of cranes, lifting and hydraulic equipment, rental of hand tools and zoned equipment and provision of training and specialist personnel to the energy industry.
With the acquisition of Specialist Maintenance Services Ltd and A1 Safety Training Consultants Ltd, EnerMech is now a leading international provider of offshore crane and lifting operations, crane personnel and safety training. EnerMech also has a significant presence in Norway following the acquisition of Bjørge ASA’s crane division in October 2008.
In April 2009 EnerMech extended its presence in the Middle East with the acquisition of UAE free zone companies Pavitt Energy Limited and Scotia Oilfield Trading FZE which has since been integrated in to the EnerMech group. Investment totaling £5.1 million ($7.5M) has been made in equipment stock rental, a new base in Ras al-Khaimah and existing facilities in Jebel Ali and Doha.
EnerMech employs 350 staff at its Aberdeen headquarters and bases in Great Yarmouth, Stavanger, Dubai, Qatar, Ras al-Khaimah, Singapore, Indonesia, China and Perth, Australia.
EnerMech’s five director-owners are backed by private equity firm Lime Rock Partners and together have in place a £30 million plus funding package to support organic growth and further acquisitions.
Issued on behalf of EnerMech Ltd by Sure Public Relations. For further information please contact Stephen Rafferty on +44(0)7980 598764 or email email@example.com