North-east subsea equipment rental, sales and services firm Ashtead Technology said yesterday it had snapped up a Middle East company to grow its business in the region.
Abu Dhabi-based TES Survey Equipment Services, which employs 12 people, was acquired for an undisclosed sum.
Ashtead chief executive Allan Pirie said: “TES is a quality business, with a strong client service ethos.
“Having been our agent in the Middle East for the past five years, we know and respect the team. As a result of this deal, we will be able to roll-out our full service offering to clients in the region.”
He added: “The acquisition represents a significant step forward in the execution of our strategy to expand both our services and geographical reach.”
The expansion comes about eight months after Westhill-based Ashfield was itself acquired by investors including the Saudi Arabia-based investment bank of 10 Arab countries.
Arab Petroleum Investments Corporation and London-based venture capital partner Buckthorn took a majority stake for an undisclosed sum.
Scottish bus and rail entrepreneur Sir Brian Souter also became a key investor, securing a minority share via Souter Investments.
Ashtead employs 75 people across operations in Westhill, London, the US and Singapore, supported by agents in Norway, Abu Dhabi and Australia.
The company was formed in 1985, when equipment rental firm Ashtead Group bought inspection equipment specialist SubSpek.
The last set of published accounts for Ashtead show pre-tax profits of £5.2million in the 12 months to April 30 2015, a 12% increase on the previous year, while turnover jumped £2million to £17.4million.
Reporting on 2014-15 trading earlier this year, Mr Pirie said the results reflected the performance of the business during a period when the market was “still relatively buoyant”.
Ashtead cut a deal worth more than £4million to supply Dutch surveyor Fugro with subsea machinery during the period.
It also announced its intention to roll out its services in Norway as part of a partnership with Stavanger-based Innova.
TES sells and rents a range of environmental, geophysical, survey and remotely operated vehicle equipment. The business will continue to be led by Susan Murray, who launched it in 2007.
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