Aberdeen-based oil service company Sparrows is planning further expansion following a change of ownership in a deal understood to be worth more than £150million.
US-based private-equity firm AEA Investors has taken control of the business.
AEA replaces London-based Close Brothers Private Equity (CBPE) as the majority shareholder.
CBPE had acquired its stake in Sparrows in a £142million transaction in 2008.
Sparrows directors continue to hold shares in the company following yesterday’s deal.
The business, set up in 1973, describes itself as a global leader in offshore lifting and mechanical handling services.
It employs 1,750 people in 19 locations around the world. About 1,100 of them are based in Aberdeen.
Sparrows said the investment by AEA would allow it to exploit current and future opportunities with funds available for acquisitions and organic growth and help the company to fast-track its global expansion strategy.
The oil service firm added that, in the past 18 months, it had transformed its business by increasing turnover, profits and international reach significantly and creating more than 200 jobs, most of them in Aberdeen.
Sparrows chief executive Doug Sedge said: “We have already invested considerably in people, premises and processes but, with AEA’s backing, we will be able to make a real step-change in our growth plans.
“The business will continue to be run by the current management team who will have significant additional capital available to accelerate the growth of the business.
“We will actively pursue acquisitions, as well as make further investment in people and equipment.”
Target areas for acquisitions are both home and abroad.
Turnover at Sparrows during 2011 was £172million compared with £149.5million in 2010 and operating profits were £10.6million, up from £5.9million the previous year.
Earnings before interest, taxation, depreciation and amortisation (ebitda) were £17.5million, an increase of almost £3million on 2010.
It said turnover could hit £190million in the current year.
David McEwing, a partner at Pinsent Masons, which advised on the deal, said: “We would expect to see continued high levels of private-equity interest in the oil and gas support service sector in Aberdeen, which has a truly global reputation.”
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