Aberdeen firm Rigmar Services has bought a majority stake in one of Dundee’s oldest fabrication companies, Riverside Engineering, in a six-figure deal.
Rigmar, which provides support services to the energy industry, is rebranding the £3million turnover business as Rigmar Fabrication.
The exact value of the acquisition, expected to lead to new jobs, was not disclosed.
Rigmar said it “secured its position” to expand into the Dundee area and further develop the current fabrication facilities at Prince Charles Wharf to provide a premier jack-up port for rig upgrades. Riverside’s workforce of about 30 people will become part of a bigger 50-strong team focused on attracting oil and gas contracts to Tayside.
Rigmar said facilities in Dundee capable of servicing jack-ups, semi-submersible rigs and dive support ships allowed it to use it as a base for targeting topside fabrication, subsea and renewables markets.
As part of the deal, Rigmar has secured a 40,000 square feet site which includes a major fabrication facility and offices.
Rob Dalziel, the firm’s managing director, said: “We have worked well with Riverside for a number of years and recognised there was an opportunity to utilise the facility and the knowledge within the business.
“We were looking for an established company with a highly skilled and experienced team to develop our plan to expand into the south as well as our vision to create one of the UK’s premier jack-up ports in the city of Dundee.”
Riverside Engineering was launched in 1983 to focus on work from the petrochemical and refining industries.
Its boss, Gary Mitchelson, becomes managing director of Rigmar Fabrication.