CEO Ana Amicarella said EthosEnergy has a “healthy pipeline of global opportunities” after Aberdeen’s Wood sold off the firm to a US private equity firm.
Late last year the gas turbine business was bought over by One Equity Partners (OEP) in a multi-million-pound deal.
Wood agreed on the deal with One Equity Partners (OEP) for a final net cash consideration of $138 million, with $42 million of prior planned loan notes replaced by an additional cash consideration at completion.
An agreement with EthosEnergy’s parent companies Wood and Siemens Energy AG was reached to sell the complete business to OEP in August and the deal was completed on the last day of 2024.
At the time of the takeover, OEP indicated a strong appetite for merger and acquisition (M&A) deals to expand the business, this is something the firm sees as creating a “healthy pipeline of global opportunities”.
Following the takeover, Energy Voice spoke to Amicarella about what the future holds for EthosEnergy.
Now that EthosEnergy’s UK-based owners are no longer involved is the direction for the UK business changing? Is the firm staying in Aberdeen?
EthosEnergy is very engaged in the Aberdeen area with multiple locations supporting our Optimization Solutions (OS) and Aerospace and Defense (A&D) divisions, as well as corporate functions.
In the UK, we also have a presence in Worcester and Lincoln, which support our Optimization Solutions business.
OEP spoke about growth when it took over EthosEnergy, can you share details on how this will impact headcount across the firm and, more specifically, in the UK? EthosEnergy operates in number of geographies, where does it see the greatest conditions for growth opportunities?
We cannot comment on the impact to headcount; however, we see opportunities for growth not only in the UK but across several geographies around the world.
North America and Europe tend to be EthosEnergy’s more mature markets for our rotating equipment services and solutions, and we believe there is room to increase market share in these areas. Additionally, we see growth opportunities in the Middle East, Africa, Asia, Aus-Pac, and Latin America.
As part of plans to accelerate EthosEnergy’s growth, OEP has mentioned M&A deals. Can we expect to see any takeovers throughout 2025? What type of firms would EthosEnergy be interested in? Will the firm be looking to expand its reach across the UK/Europe through this process?
© Supplied by EthosEnergyWe plan to work very closely with OEP to help accelerate our growth, particularly through M&A.
OEP’s strategic investment and support will position us to meet the challenges of energy demand and the energy transition.
For example, our focus will continue to be on addressing the maintenance needs of an aging turbine fleet and capitalizing on emerging market trends as it relates to rotating equipment.
As for timing, we cannot comment on any active M&A discussions, but we have a healthy pipeline of global opportunities currently under evaluation with OEP.
EthosEnergy reported a net debt of $81.7 million to 31 December 2023, how did operations throughout 2024 impact this? What are EthosEnergy’s plans to reduce its debt in 2025?
With the acquisition by OEP, our capital and debt structure has changed.
The company is well-positioned to continue to invest in growth initiatives as opportunities arise.
Cash from operations, net of investments will be used to address our debt.
How does EthosEnergy plan to take advantage of what you described as “strong secular tailwinds” this year and what are its plans going forward? Of the sectors EthosEnergy operates in, which are set to be the most lucrative over the next 12 months?
EthosEnergy plans to leverage its partnership with OEP to enhance our capabilities, improve operational efficiency, and invest in innovative technologies.
This alliance will help us adapt to the changing energy landscape while maintaining high standards and meeting customer needs. Specifically, within our three divisions:
OS will focus on maintaining and overhauling rotating equipment like gas and steam turbines, generators, compressors and transformers. Within gas turbines, we see demand for rotor life extension solutions and the need for enhanced gas path parts. We are also looking to add other complementary intellectual property that will further expand our service offerings.
© Supplied by EthosEnergyOur O&M division has seen a portfolio increase in both thermal and renewable power plant operations, which we will continue to focus on. We have also launched our Performance Center in Houston, Texas for real-time remote operations and diagnostics, benefiting power plant owners.
The A&D division has secured multi-year MRO contracts for aviation, industrial, and military sectors, focusing on quick repairs and increasing our proprietary DERs.
What projects is EthosEnergy working on this year within the UK as part of its energy transition “turning on tomorrow” campaign?
In the UK, we are working with customers on a variety of projects geared towards bridging the energy transition gap and supporting decarbonization efforts.
Our customers span the power generation, oil and gas, and industrial markets, and they have sought our solutions for carbon capture and hydrogen utilization in their operations.
For one major oil and gas customer, we developed maintenance solutions that resulted in a 60% reduction of emissions.
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