North-east energy service company Proserv is on the acquisition trail at home and abroad after a £133million refinancing agreement was announced yesterday.
The term loan and revolving credit facility is being supported by HSBC, Lloyds, Barclays, Wells Fargo, Santander and the Royal Bank of Scotland.
Simmons and Co in Aberdeen advised on the deal, which will be used to pay down debt, pursue strategic acquisitions and support Proserv’s growth strategy.
Chief executive David Lamont said: “Proserv is entering an exciting new era and the new refinancing agreement will underpin our strong business plan for growth, often through new strategic acquisitions.”
A spokeswoman for the company confirmed it would be looking to make acquisitions in regions including the UK, US and Europe plus the Middle East, Africa and Australasia.
Proserv has three divisions: exploration and production solutions, involved in areas such as subsea controls and communication equipment; drilling solutions, whose products and services include valves and power units, and infrastructure technical services, which takes in subsea dredging and cutting.
Steve Hewes, head of leveraged finance for Scotland at HSBC, said: “HSBC is delighted to play a leading role in this refinancing which assists with the company’s continued growth aspirations, both organically and via acquisition.”
Proserv has experienced strong growth recently, with turnover rising from £112million in 2011 to £196million in 2012.
The agreement comes after the company made two acquisitions in 2012 of Weatherford’s UK-based subsea-control business and US firm Total Instrumentation and Controls. The deals increased Proserv’s workforce by more than 600 staff to 1,600-plus. The Westhill-based firm was established in 1974 and operates from 30 sites worldwide.
It consolidated the Proserv brand in 2011 after it merged its five business units: Proserv Technology, Proserv Offshore, Hydrafit Subsea, Gilmore and Argus Subsea. Lloyds Bank commercial-banking acquisition finance director Jimmy Williamson said: “The Proserv team have done an excellent job of integrating five specialist businesses and is forecast for exceptionally strong growth.”