Proserv Divests Precision Engineering Business
- Business & Finance
Controls technology company Proserv has sold its Coatbridge, Scotland-based speciality machining business, formerly known as KRG Industries.
The divested business will now trade as KRG Specialist Engineering Services and will continue to operate from its current facilities, providing precision machining services to a number of diversified clients including the oil and gas sector.
The existing management team of KRG will lead the company with Gerry Hughes as managing director.
Following a strategic review of Proserv’s portfolio, third party machining services no longer complemented the firm’s core offering, so a sale process was activated last year and has resulted in the successful disposal of the business to GIL Investments (GIL).
Davis Larssen, chief strategy officer for Proserv, stated, “The Coatbridge business was acquired at a time when Proserv was investing in bringing an alternative subsea tree proposition to the market. Following the industry downturn in 2015, the development plan was reviewed and changed, with this sale representing the final part of our exit from this area of the oil and gas market, enabling Proserv to focus exclusively on its core controls technology.
“The essential attributes of the Coatbridge business remain exceptionally strong and it was recognised that the business is set up to achieve its ambitions under new ownership. I am pleased the existing management team led by Gerry Hughes will remain with the business and take it forward.”
The financial terms of the deal have not been undisclosed.