Aberdeen-based XPD8 Solutions has been the subject of a management buyout.
An investment of £2million-plus by Maven Capital Partners allowed bosses at XPD8 to buy shares in the fast-growing energy service business, which is estimated to be worth more than £6million.
XPD8 is aiming to double in size in three years by exploiting opportunities in the safety management and maintenance sector of the global oil and gas industry.
This transaction represents Maven’s seventh new private-equity deal in Scotland since it was established through the buyout of the private-equity division of Aberdeen Asset Management in June 2009.
Formed in 2003, XPD8 offers asset and integrity-management services to the oil and gas industry using bespoke software.
With annual turnover approaching £4million and 30 employees, it has grown rapidly and boasts a blue-chip client base that includes BG Group, ConocoPhillips, Apache, BP, Nexen and Petro-Canada.
The management team, including Neil Arthur, Gordon Ellis, Mike Noble and Scott Morrison, become shareholders under the transaction, with founder Mark Cavanagh remaining the biggest single shareholder and Maven becoming a minority shareholder. Management including Mr Cavanagh hold more than 50% of the shares.
The team will be complemented by the appointment of Allan Merritt as chairman and John Duncan as finance director, both with significant private-equity experience in the energy service sector.
Mr Cavanagh said: “XPD8 has a strong order book and is forecasting significant growth in revenue and profitability over the next three years from new and existing customers.”
The Maven investment was led by its Aberdeen-based energy investment team of Jock Gardiner and Ewan MacKinnon. Partner Mr Gardiner said: “We are delighted to provide equity funding to assist the senior management to buy into such an attractive business with excellent growth potential.”