Mechanical engineering company EnerMech has announced an additional £20million of funding from Lloyds Bank Commercial Banking (LBCB) in Aberdeen.
The firm said yesterday the cash would support its further expansion.
LBCB is one of the original financial backers of EnerMech, which was established in 2008, now has 1,400 employees operating from 24 locations and is forecasting turnover will exceed £225million this year.
An initial investment of £24million was increased to £44million in 2011 and the latest round of funding takes LBCB’s support to more than £60million.
EnerMech provides a range of services to the oil, gas and energy sector including cranes and lifting, valves, hydraulic engineering, pipeline, process and umbilicals, rental equipment and training services.
Finance director Michael Buchan said: “This additional facility will assist with planned organic growth and a number of acquisitions which will strengthen our operations in Australia and Africa.
“LBCB has been very supportive of EnerMech since the earliest days and this latest capital investment demonstrates the strong relationship we enjoy with our banking partners.”
To date, EnerMech has invested £75million in organic growth and £30million on acquisitions, including the most recent additions to the group: Valve Tech Engineering, in Melbourne, Australia and Water Weights International, in Cape Town.
Mr Buchan added: “This dual policy of measured organic growth and astute acquisition means we are now an organisation with substantial scale in each of our business lines across many of the key oil and gas territories.
“Setting out with a clear strategic plan, coupled with aligning ourselves with the right group of strategic investors, has been critical to this success.”
Stuart Brown, regional director in LBCB’s complex-deal team, said: “Supporting fast-growing Scottish companies is a key focus for Lloyds Banking Group. In this regard, we are delighted to continue to support EnerMech’s management team with this additional funding to fulfil its strategic plans.”