Aberdeen oil service company Electro-Flow Controls (EFC) has been the subject of a management buy-in, it was announced yesterday.
The deal sees managing director and majority shareholder John Wheeler and sales director Ted Littlechild sell their stakes for several million pounds.
The new management team will be led by Aberdeen businessman Bob Will and is backed by Maven Capital Partners and private-equity fund Simmons Parallel Energy, with Clydesdale Bank providing banking services.
Mr Will’s firm Celeris, also backed by Maven and Simmons, will become a sister company of EFC and together they will provide advanced control and mechanical-handling services to the global energy industry.
Mr Will has more than 30 years’ experience in the oil industry and has held senior management positions in Schlumberger, Expro and RBG. He said: “EFC is a great business that has become a niche market leader within the controls and instrumentation sector of the global oil and gas industry. With the increasing demand for rig and vessel upgrades, there is huge potential for further growth.
“The combination of Celeris and EFC offers a springboard to the next level of integrated electrical and mechanical solutions to this expanding market.”
Established in 1988, EFC employs 62 people in Aberdeen and Houston, all of whom will be retained by the new management.
Mr Wheeler will remain with the company as a consultant to help drive international growth which will focus on South America and south-east Asia.
Mr Wheeler said: “In the last five years, EFC has seen significant growth and I am delighted that Bob . . . with Maven and Simmons have invested in its future.
“This investment and new impetus will ensure that we can fully exploit the undoubted potential.”
Mr Littlechild will continue in his role.
Jock Gardiner, Maven partner in Aberdeen, led the deal. He said: “Maven continues to be very active investors with this, our third energy service-sector investment since our formation earlier this year.
“The capital we are providing will help to accelerate the growth plans, particularly internationally.
“We are looking forward to working with Bob and to fulfil the ambitions of the management team and our investors.”
This deal marks the first investment for Simmons Parallel Energy, whose parent is energy investment bank Simmons and Company International.
Frank Summers, head of Simmons Parallel Energy, said: “We are delighted that the first investment from our new co-investment fund is backing Bob and investing in a high-quality company in EFC, which is a robust business with a very bright future in a growing global market.”
Clydesdale Bank is providing £4.5million of banking facilities to the new management team.
Advisers in the deal included Stronachs, Cameron McKenna, Paull & Williamsons, Anderson Anderson and Brown, Johnston Carmichael, Simmons Corporate Finance and Calash.