An Aberdeen-based supplier of hoses to the offshore oil and gas industry has been sold to a Swedish industrial firm in a deal worth up to £6million.
Bridge-of-Don-based First Hose has been sold by majority owners Fred and Donna Nicol to GS-Hydro, a Finland-based firm which is owned by Swedish listed private equity conglomerate, Ratos.
Ratos said it would make an upfront payment for £4.5million with a “maximum additional purchase price” of £1.5million.
Graham Cunning, Corporate Finance Partner with Campbell Dallas and adviser to the shareholders, says that despite the oil price crash last year, the deal showed there is still an active market for quality businesses.
He said: “While the downturn has been painful for many, it has also brought opportunity for growth-oriented businesses to position themselves for the upturn.
“The acquisition of First Hose by GS-Hydro is a perfect example of a great business being bought by a global company with a clear growth strategy.
“This is a good time to sell a quality business, and also for strategic buyers to execute their M&A growth plans, in preparation for the next stage of the economic cycle.”
Managing director Mr Nicol, who plans to stay with the business said: “My wife Donna and I are hugely proud of the growth that we have achieved at First Hose, taking the business from start up to where it is today.
“That’s in no small part due to the commitment of our employees, and the support of our customers and suppliers. Being part of GS-Hydro will allow First Hose to accelerate our growth plans together.”
Chris Hargreaves, Managing Director of GS-Hydro UK states: “This acquisition is an important step in delivering GS-Hydro strategy. We are delighted to have acquired First Hose which will significantly strengthen GS-Hydro’s position in the offshore after sales market in the UK.”
First Hose was established in 1989 and provides its customers with offshore rig supply hoses, hydraulic hoses, instrumentation, adapters and fittings.
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