HBJ Gateley has advised the private equity firm Azure Investments on its acquisition of Dundee-based construction business Muirfield Contracts, as the builder seeks to target Scotland’s thriving energy sector.
Despite the continuing difficulty in the building industry, Muirfield has posted consistent year on year growth, with GBP2m profit from GBP42m turnover in FY2012/13.
The deal comes as Muirfield Contracts owner Maurice McKay prepares for retirement, with Azure Investments seeking to continue the company’s growth by targeting Aberdeen’s oil and gas industry.
Lindsay Cowan, former regional managing director of Mansell Homes for Tayside and Fife, has been appointed as Muirfield’s new managing director with immediate effect. McKay will remain as joint chairman of the business, alongside John Stodart, chairman of Azure Investments.
Recruitment to support growth in Aberdeen has already begun, and Stodart says the business will look at strategic acquisitions as well as organic growth over the next five years.
“Muirfield Contracts has a rock-solid reputation for quality work and professional service in both private and public sectors, and we saw that as a very good fit for Azure. We are geographically well-placed to serve the needs of clients on the east coast, and we’re confident the experience and people we have in the business will help us establish strong relationships in Aberdeen.
“The fact that Muirfield has been able to weather the significant storms faced by the construction industry, and not only survive but continue to be profitable, says a lot about the strength of the current management team and we’re very much looking forward to working with them,” he says.
Muirfield Contracts was founded in 1988 and employs more than 450 people, many of whom have been with the business for more than 15 years.
HBJ Gateley partner Graeme Henry, who led the deal, sysd Muirfield’s trend-bucking performance and encouraging pipeline of work made it a strong investment for Azure.
“Investing in a construction business at a time like this might seem unusual, but Azure has an eye for a great business and Muirfield Contracts has been defying the overall sentiment in construction by achieving consistent growth over the last several years.
“This demonstrates to other ambitious businesses which want to capitalise on previous successes that there is money out there if you are able to give investors a compelling picture of a well-organised, profitable business with a solid strategy for growth,” says Henry.
