Aberdeen-based energy service company Hydrasun says its massive growth will continue after announcing a change in private-equity backer.
Bosses at the company are forecasting as many as 200 new jobs at home and abroad in four years, while turnover could almost double to £175million.
Hydrasun revealed yesterday that Equistone Partners Europe had exited the business and been replaced by larger group Investcorp.
Exact financial details have not been disclosed, but the deal is understood to put a value of around £160million on Hydrasun.
Equistone had backed the management of Hydrasun in 2007, in a transaction that valued the business at £75million.
Investcorp, based in Bahrain in the Middle East, is believed to have taken a stake of about 80% in the firm, with the remaining shares in the hands of the management.
Hydrasun is expected to record turnover of about £106million in the financial year to the end of March, with earnings before interest, taxes, depreciation and amortisation of around £18million. Chief executive Bob Drummond is targeting turnover to hit £175million by the year to March 2016.
He added: “We have had back-to-back growth of 30% in each of our two latest financial years and we see great opportunities ahead.”
Staff numbers are just over 600 people around the world – 350 of them in Aberdeen – and Mr Drummond reckons this could jump to as much as 800 by 2016.
Zones being targeted for high growth include Brazil, west Africa and the Middle East.
Mr Drummond, 57, has been with the firm for more than 10 years and is looking forward to leading the business in the next stage of its growth. He said all seven directors were staying on after the deal, with the second tier of 15 managers below them.
Mr Drummond said there had been offers for the business from other energy service firms, but he felt it was important for Hydrasun to keep its independence, adding: “We are a close-knit team here.”
He said investors in Investcorp included wealthy business people in the Middle East and they could help to open doors in the area for his company. The CEO also said he was aware of anti-government protests in Bahrain, and was keeping an eye on the situation, but it did not give him undue concern.
Hydrasun has a war chest of £20million for acquisitions, but the change in private-equity backer means it has “access to substantial extra funds if the right deal came along”.
The location of such an acquisition was most likely in the Middle East, said Mr Drummond. Any such deal could give a big boost to projected staff numbers and turnover figures.
The Granite City firm is a specialist provider of integrated fluid-transfer, power and control services.
Specialist corporate-finance adviser Simmons and Co International advised Hydrasun shareholders on the sale.
Nick Dalgarno, a managing director at Simmons, said: “This deal underlines the strong private-equity appetite for oilfield service investments.
“Hydrasun has been a fantastic success story and Bob and his management team deserve enormous credit for transforming the business from a North Sea distributor into a market leading international service business.
“It is a good deal for all parties, securing an excellent return for Equistone, who invested in the business through the global financial crisis while providing a strong platform for growth for Investcorp.
“The management team have also demonstrated their sustained confidence in and commitment to the business by investing in the next stage of its growth.”
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