Maven Capital Partners has invested GBP7.5m in support of the GBP14m MBO of Rmec Ltd, a specialist mechanical and hydraulic engineering company.
This is the private equity firm’s seventh oil and gas transaction over the past nine months, and takes Maven’s recent investments in energy services companies that are active in the north-east of Scotland to GBP30m.
Rmec specialises in the manufacture, maintenance, repair, testing, recertification and rental of well services equipment for the oil and gas industry, and has 20 staff and a turnover of GBP9m for FY14.
The investment will enable Rmec to fast-track its growth in the North Sea, expand its rental fleet, further develop its workshop and storage facilities, and bolster the management team.
Jock Gardiner, partner at Maven, says: “Rmec is operating in a rapidly growing market and has the opportunity to capture significant market share. The business has built-up an excellent reputation in the market for speed, flexibility and quality of its service. Its comprehensive range of tools are capable of performing work to the highest safety and reliability standards and this has led to the business securing a number of contracts with large blue-chip clients.
“The number of transactions Maven has completed in the energy services sector within the last year demonstrates the strong pipeline of M&A activity in oil and gas and underlines our ability to identify and work with dynamic companies, supporting their strategic development and operational growth.”
Rmec will be led by the newly appointed managing director, Bryan Fagan, who was formerly part of the management team which sold Dominion Gas to Praxair. Prior to joining Dominion Gas as sales director, Fagan led sales for Phoenix Polymers.
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 focused on establishing the business as a market leader in the rental, sale and service of equipment for well services.
Fagan says: “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.”
Simmons & Company International Limited advised Rmec’s founders on the deal.
