Private-equity firm Lonsdale Capital Partners has snapped up a majority stake in Aberdeen company Oteac.
Other shares continue to be held by chief executive Bill Hogarty and fellow director Sandy Brown, who previously owned 12.5% and 87.5% of the business respectively. Lonsdale did not say how much it paid for its stake but Oteac, which specialises in integrated fire and safety engineering services, turned over £8.67million in 2012.
Oteac employs 55 people from offices in Maryculter.
It serves the industrial, commercial, public, marine, offshore oil and gas and drilling sectors.
Accounts at Companies House show the 27-year-old firm, acquired by Mr Brown and Mr Hogarty in 2006, made pre-tax profits of £1.77million last year.
This was up from just under £1.3million in 2011, while the latest turnover figure was up by more than £300,000.
Lonsdale said Mr Hogarty was staying on as chief executive following the acquisition and that he, Mr Brown and senior management were holding a “significant” stake.
Mr Brown said: “Oteac has grown strongly in sales and profits in recent years. Lonsdale can help us boost this growth with its ambition, capital and expertise.
“We were particularly impressed with how they developed and grew Aberdeen-based OEG, the supplier of offshore oil and gas containers.”
Mr Hogarty added: “The specialist nature of our business provides us with a solid model on which to build for the next exciting chapter of our growth.”
David Gasparro, who in 2010 teamed up with two other investment bankers to launch Lonsdale, said Oteac’s “emphasis on top-end engineering solutions, its strong client focus and the scope and ambition of management to grow the business” were attractive.
“We have had a good meeting of minds with Bill and Sandy,” he added.
Lonsdale represents institutional and private investors including Souter Investments, the family investment vehicle of Stagecoach Group co-founder Sir Brian Souter.
The private-equity company was advised in the deal by Aberdeen accountancy firm Anderson Anderson and Brown, which initiated the transaction, and law practice Dundas and Wilson.
Last year, Lonsdale sold Offshore Containers Holdings – the owner of Aberdeen-based OEG Offshore – to OCHL (Globe), part of Cyprus-registered group Morcell.
The value of that deal was not disclosed but Lonsdale said yesterday it received nearly five times its investment in the business.
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