LDC, the private equity arm of the Lloyds Banking Group, has invested in Aberdeen-based subsea construction company Subocean Group.
Subocean, which is now one of the largest providers of services to the marine renewables sectors in Scotland and the UK, will use the investment to double the business in two years and achieve a turnover of GBP300m by 2014.
The company secured LDC’s GBP17m equity investment as part of a GBP42m fundraising in one of Scotland’s biggest private equity deals this year. LDC has a significant minority stake, valuing Subocean in excess of GBP75m.
Subocean managing director and shareholder John Sinclair (pictured with James Rodger, LDC’s director in Scotland), says: “LDC’s investment demonstrates fantastic confidence in the business and its potential, particularly within marine renewables where we are now working on over 50 per cent of offshore windfarm projects currently under construction in UK waters. With an order book standing at GBP150m, we have strong foundations for our ambitious growth which the new equity will help us pursue.
“To date, Subocean has only been addressing the UK market requirements but we see an even bigger opportunity to capture a significant share of business outwith the UK from 2011 when other European governments start progressing their own renewable targets for 2020.”
Rodger adds: “LDC is delighted to support Subocean and its management team. Following a series of major contract wins, the company has become a leading player in a sector which is poised for major capital investment over the next ten years.”
Rodger is joined on the Subocean board by fellow LDC director Steve Carle.
Alongside this investment, Subocean has also secured expansion and working capital facilities of around GBP25m from HSBC Bank.
