An Aberdeen private equity firm has bought into another oil services company – its seventh in just nine months.
Maven Capital Partners announced yesterday that it was investing £7.5million in RMEC, bringing its total investment since July last year to £30million.
Forfar-based RMEC – a mechanical and hydraulic engineering company specialising in the manufacture, maintenance, repair, testing and rental of well services equipment – has 20 staff and a turnover of £9million.
The deal comes just days after Maven pumped nearly £5million into IT firm ISN Solutions as it expands into Aberdeen.
The new investment will enable RMEC to fast-track its growth in the North Sea, expand its rental fleet, further develop its workshop and storage facilities as well as bolster the management team.
Jock Gardiner, partner at Maven, said: “There is a major opportunity for RMEC to capture a significant slice of a rapidly growing market and our investment will ensure that the company is well positioned to do so.
“This transaction underlines our ability to forge relationships with companies that result in strengthened management teams which are capable of delivering strategic development and operational growth.
“This is Maven Aberdeen’s seventh new energy services sector equity investment in nine months, demonstrating the strong pipeline of mergers and acquisitions activity in oil and gas and our commitment to helping smaller oil services firms in the north-east flourish.”
RMEC will be led by new managing director, Bryan Fagan, who was formerly part of the management team which successfully sold Dominion Gas to Praxair.
Prior to joining Dominion Gas as sales director, Mr Fagan directed sales for Phoenix Polymers.
Major RMEC shareholders and founders, Alan Ramsay and Stuart Mathers, will remain as part of the management team.
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