Maven invests GBP4.25 million in the MBO of diving control specialist Fathom Systems
Private equity firm Maven Capital Partners (Maven) has led the Management Buy-Out (MBO) of Fathom Systems Limited (Fathom).
Established in 2005, Fathom provides niche solutions and products to the commercial diving, Remotely Operated Vehicles and underwater engineering sectors. The business now generates a turnover of GBP5 million and employs 36 skilled personnel.
The transaction represents the 9th Private Equity transaction completed by Maven in 2014, following its investment in a number of fast growing UK SMEs including the global cycling apparel brand Endura, chromatography solutions business Crawford Scientific, and IT support services specialists ISN Solutions.
The deal will see Maven’s clients buying a majority stake in the business for GBP4.25 million and Managing Director, Gareth Kerr, will continue in his position leading a strong and experienced senior management team through the company’s next phase of growth.
Headquartered in Portlethen, south of Aberdeen, Fathom develops an extensive range of high-quality engineered products and systems for a global blue chip client base. The diving control systems which Fathom develops are critical to subsea processes and due to the high safety standards and reliability of its products they are widely used across the diving industry.
Fathom has recently moved its operations to new larger premises to provide capacity for growth. Maven’s funding will be used to help the business grow internationally and to expand the company’s product line into other high-end engineered systems, capitalising on the success of the Fathom brand which has found success based on the quality and reliability of its designs and its key focus towards customer and operational support.
Jock Gardiner, Partner at Maven, says: "We are very impressed with the development of Fathom Systems to date and look forward to working in partnership with Gareth Kerr and his team to expand the business. Fathom has an excellent reputation for ‘best in breed’ products and service delivery with genuine growth potential. Built to high specifications its intelligent underwater systems have a proven track record for reliability which is essential in a sector with increasing health and safety requirements. The transaction represents an excellent opportunity for our client funds to invest at an attractive price in a strong brand which truly has unique engineering solutions highly valued within its industry.”
Gareth Kerr, Managing Director at Fathom, adds: “The Maven deal has come at a perfect time for Fathom Systems. Over the past year the business has doubled its turnover and staff, and similar growth is expected over the next two years. We have built a strong brand since the company’s formation in 2005 and this will be the foundation for the next phase in our development. Our reputation for quality products, engineered systems and service has given our Clients the confidence to choose Fathom for their new projects and fleet upgrades. With the backing of Maven and the support of a strengthened management team we will exceed Client expectations and achieve our growth ambitions both in existing and new markets.”