ABERDEEN mechanical service company EnerMech revealed further acquisitions yesterday, part of an £8.5million investment in two firms in the Middle East.
EnerMech said it had bought Pavitt Energy and Scotia Oilfield Trading (SOT), both based in the United Arab Emirates, adding to a trio of businesses acquired by the group last autumn.
Pavitt was founded in 2003 and has its HQ in the Jebel Ali Free Zone, Dubai. It specialises in large-equipment rental and the supply of personnel for a wide range of oil, gas, construction and drilling projects.
SOT is an equipment-repair company based in the northern UAE emirate of Ras al Khaimah. The combined acquisition price is about £3.4million, with EnerMech investing a further £5.1million in additional equipment-rental stock and a new 60,000 square-foot facility at Ras al Khaimah.
Pavitt and Scotia employ 50 staff in total and have contracts in key regions, including Dubai, Abu Dhabi, Qatar and Kazakhstan.
EnerMech said the double acquisition gave it an immediate presence in the Middle East, with managing director Doug Duguid predicting Middle East turnover could grow to up to £55million within five years.
He said: “There are fantastic prospects for us in Abu Dhabi, Qatar and Saudi Arabia and we will use the experience and combined strengths of Pavitt and Scotia as a springboard to access those opportunities.”
The company is working on a potential acquisition elsewhere in Asia, with an announcement expected within a few months.