Craig Group Disposes of Its Shipping Arm amid Restructuring
- Business & Finance
UK-based Craig Group has sold its shipping arm, North Star Shipping, a provider of emergency response and rescue services to the offshore industry in the UK North Sea, to infrastructure equity fund Basalt Infrastructure Partners II LP (Basalt).
The existing senior management team, staff and crew of North Star will remain with North Star, under the new owners, Craig Group said.
“The senior management team, staff and crew at North Star will remain with the business and this transaction will not impact on our day to day operations. We remain committed to delivering the highest standards of safety and service to our clients and provide industry-leading vessels and support,” Callum Bruce, Managing Director of North Star said.
North Star currently owns and manages 31 vessels supported by a fleet of approximately 50 fast rescue crafts and 35 daughter crafts.
“The opportunity arose to secure the long-term future of North Star Shipping under new ownership who could bring even more opportunity for further investment and growth. Given our rich maritime heritage, this is not a decision we have taken lightly, but it is one which makes sense for the Craig family and for the future development of North Star,” Craig Group commented.
Craig Group will continue to own and manage its global oilfield procurement business, Craig International, the company added.
“North Star is a highly attractive investment opportunity in a UK regulated sector. The transaction provides a proven management team that has built a stable business, with strong growth potential and providing sector diversification for Basalt,” Steven Lowry, Partner of Basalt Infrastructure Partners LLP, advisor to Basalt, said.
The emergency response and rescue vessel (ERRV) business is a highly regulated sector in the UK which demands a 24/7, 365-day service provided to oil and gas companies operating with personnel on offshore platforms.
“We are very excited to be partnering with Basalt for the long term. Their investment coupled with our market-leading position and sector knowledge provides a strong platform for future, sustainable growth and diversification of the Company,” Bruce added.
Bank of Scotland has provided financing to Basalt for the acquisition.