UK: EnerMech Ltd. Pay $11 million to Buy Norson Power
Hydraulics engineering firm Norson Power has been acquired by mechanical services company EnerMech Ltd in an £11 million deal.
Founded in 1974 in Aberdeen, Norson Power provides hydraulic pipework installation and designs and manufactures hydraulic equipment for the oil, gas and marine industries.
EnerMech has acquired the entire equity held by the management team, investors Aberdeen Development Capital, and other individual shareholders. Norson employs 90 staff in Aberdeen and Houston and in the last financial year posted revenues of £14 million with £2.3 million EBITDA.*
Aberdeen-based EnerMech, which provides mechanical services, cranes and lifting equipment, hydraulics, equipment rental and training services to the offshore oil and gas sector, said Norson’s core business will complement EnerMech’s existing products and services and will take the group’s 2010 revenue to more than £60 million.
In addition EnerMech will invest a further £2 million to roll out Norson’s hydraulic services to EnerMech bases in Dubai, Singapore, West Africa and Perth, Australia
The acquisition of Norson and the additional growth capital to expand Norson’s geographic footprint brings the total equity investment in EnerMech by Lime Rock and the company’s management team to £41million.
EnerMech managing director, Doug Duguid, said: “The acquisition of Norson and its staff and is a key development in the growth of EnerMech. Norson is a well run, profitable business, with the potential for further growth and this acquisition will take EnerMech to £60 million annual turnover just two years after we started up in business.
“Synergy is an over-used word but in this case Norson’s expertise and products dovetails extremely well with our existing business lines. Norson has a lot of clients in the drilling and subsea construction sectors which we can tap into, while its reputation for designing and building top class hydraulic systems will help us attract new customers in international markets.
“The company is a major supplier of hose and fluid connectors which will complement our own hose and fittings business. The acquisition also boosts our expertise in hydraulic engineering and positions EnerMech as being able to offer a much more comprehensive range of services than our competitors.”
Norson’s base in Houston will also be utilised to extend EnerMech’s reach in North America and the Gulf of Mexico and to support existing clients and contracts in Brazil.
Mr Duguid said Norson’s management team, led by managing director Gordon Telfer, would remain in situ and is viewed as a key element in growing the business. All staff will transfer to EnerMech’s headquarters in Howes Road, Aberdeen, later in 2010.
Norson Power managing director, Gordon Telfer, said: “EnerMech has the capital resources and international expertise which provides Norson with the opportunity to penetrate new markets. It’s envisaged our workforce will increase and the deal brings exciting opportunities for existing and future employees.”
Source: Enermech,April 16, 2010;Image: Enermech,April 16, 2010