EnerMech Acquires UK and Australian Companies
Oil and gas engineering company, EnerMech, has snapped up Australian industrial sector firm Vicon Services, and UK-based pump equipment specialist Total Reclaim Systems Ltd, in deals worth a combined £10 million.
The Aberdeen-based mechanical engineering group will introduce new business lines and significantly strengthen its presence in the multi-billion dollar Australian energy sector through the Vicon deal. The acquisition of Total Reclaim Systems (TRS) increases the range of services EnerMech can provide to the drilling sector.
With more than 100 staff across another five Australian locations, Vicon is led by Niall Conlon and last year it had turnover in excess of £12 million (AUD $20 million.)
Vicon provides engineering services including high pressure water-jetting, heat exchanger services, coating systems and chemical services, which are well aligned with EnerMech’s six existing business lines.
It is EnerMech’s second Australian acquisition this year, following the January purchase of Melbourne-based Valve Tech Engineering, which provides valves services to the oil and gas, power, petrochemical and refining industries.
Vicon Services managing director, Niall Conlon, said: “It is a very good deal for both companies and with very little crossover in the products and services we provide, it’s an excellent fit geographically and strategically.
“From Vicon’s perspective, it’s like having a big brother with a larger balance sheet and more fire power. Our focus has always been to be a one-stop shop and to provide a seamless service for the client and now, with EnerMech’s portfolio of products, we can do even more of that.”
EnerMech finance director, Michael Buchan, said: “Vicon’s first class reputation for quality of service was a strong attraction to us and it has skills and services which align very well with our own.
“Australia is a key market for EnerMech and the deal sends out a strong signal to the energy sector that we are serious about investing there and will use our extensive resources to deliver a more integrated and cost-effective service to our clients.”
Great Yarmouth and Aberdeen-based Total Reclaim Systems (TRS) provides mud pit and tank cleaning services for offshore oil rigs and production platforms. Its technology reduces the volume of waste fluids created, reduces manual handling and minimises risk by reducing the number of personnel involved in cleaning operations.
The acquisition will allow EnerMech’s Drilling Support Services division to increase the range of services it offers clients, while TRS will boost its international exposure through access to EnerMech’s 25 global locations.
TRS managing director, Richard Martin, said: “Our specialist pumping services are now increasingly in demand outside our domestic UK market and joining EnerMech gives us access to international markets where there is a strong demand but which so far have remained untapped.”
EnerMech managing director, Doug Duguid, said: “Total Reclaim Systems makes smart use of technology to benefit clients and that is something we value. This acquisition widens the scope of services we can provide to our clients in the drilling support sector and it fits in very well with our policy of trying to offer each client as integrated a service as possible.
“TRS is well established in the North Sea, and has worked in Australia and Africa, but we both recognise there is a huge potential for its suite of products in overseas markets. We will make good use of our international network and local contacts to accelerate growth and to expand the business.”
TRS will continue to operate from its Admiralty Road base in Great Yarmouth and all 10 staff has transferred to EnerMech, including Richard Martin who will work as senior consultant and managing partner, Bill Skene, who will continue to operate out of Aberdeen.