Oil and gas services firm EnerMech is planning more acquisitions after agreeing a new funding package worth up to £24million.
The deal announced yesterday is with Lloyds Banking Group’s corporate markets division.
The package includes £4million to buy EnerMech’s business premises and surrounding land.
There is also a revolving credit facility worth an initial £10million, which could rise to £20million.
The mechanical engineering services business has also announced a new international cash-management facility with Lloyds, which is now EnerMech’s sole banker.
Doug Duguid, managing director of Aberdeen-based EnerMech, said: “We have quickly built up a global reputation in all the major international oil and gas hubs and our ambition is to strengthen the group with further acquisitions in the months ahead.
“We have been working closely with Lloyds Banking Group to identify the best way to develop our business and this latest deal demonstrates our commitment to long-term growth.
“The international cash-management solution allows us to pool here in the UK the US dollars held by all our subsidiary companies around the world. Dollars are the main trading currency across the group and the move will minimise transaction costs.”
Andrew Robertson, relationship director with Lloyds Banking Group’s Aberdeen and north of Scotland corporate markets team, said: “This deal not only provides EnerMech with a substantial amount of credit, but it also enables them to benefit from our bespoke international cash-management service.
“EnerMech is a great example of a thriving Scottish business that is in a strong position to grow both domestically and internationally.
“The EnerMech management team has a proven track record and we are delighted to be supporting its ambitious growth plans with this substantial funding package.”
Formed in 2008, EnerMech provides supply, maintenance and engineering services for offshore cranes, lifting and hydraulic equipment, tools and equipment rental and the training and supply of specialist personnel.
The company employs 450 staff in the UK, US, Norway, Caspian, Middle East and Asia-Pacific.
It has made six acquisitions to date and the most recent was Aberdeen hydraulic engineer Norson Power in an £11million deal completed in April.
The enlarged group’s revenue for this year is forecast to exceed £60million.
Total equity investment in EnerMech by private-equity firm Lime Rock Partners and the EnerMech management team to date is £41million.