MECHANICAL engineering group, EnerMech, has acquired Aberdeen Valve Supplies Ltd (AVS) in a deal believed to be worth around £1.5 million.
AVS and its subsidiaries LG Ball Valves Ltd and Valve Paint Shop Ltd supply valves, valve controls and associated equipment and services to the oil, gas and petrochemical industries.
EnerMech recently announced it will invest £2 million in setting up its own valve care division and the acquisition will bolster this business line. AVS has an excellent service reputation, which allied to EnerMech’s international reach will enhance the enlarged division and lead to significant growth.
The value of the deal has not been revealed but includes the trade and assets of all three companies. All AVS equipment, including a sophisticated valve testing and valve painting and coating facility in Aberdeen, will be relocated to EnerMech’s headquarters in the city’s Howes Road by mid 2011. AVS owners, Gordon Whyte and Sylvia Aitken, and more than 20 staff will join EnerMech as part of the acquisition deal.
EnerMech specialises in the supply, maintenance and engineering of cranes, lifting, valves and hydraulic equipment, equipment rental and the provision of training and specialist personnel to the energy industry.
EnerMech managing director, Doug Duguid, said the deal was an excellent fit for EnerMech and was part of the company’s strategy to expand its service lines by acquisition and organic growth.
Mr Duguid said: “Aberdeen Valve Supplies has a first class reputation for its service quality, has long standing relationship with key clients and maintains a number of important contracts in valve supply and maintenance.
“The subsidiary LG Ball Valves manufactures its own line of ball valves, which fits very well with our existing services and we will continue to use that brand name. With our extensive international infrastructure we can push out AVS’s products and services to new markets and offer clients of both companies a much more focused, one-stop shop service.
“I am delighted to welcome Gordon Whyte and Sylvia Aitken and their staff in to the EnerMech group and look forward to working with them to establish one of the most specialised valve care companies operating in the oil and gas sector.”
Note to Editors
EnerMech Ltd was formed in April 2008.
The company specialises in the supply, maintenance and engineering of cranes, lifting, valves and hydraulic equipment, equipment rental and the provision of training and specialist personnel to the energy industry.
With the acquisition of Specialist Maintenance Services Ltd and A1 Safety Training Consultants Ltd, EnerMech is now a leading international provider of offshore crane and lifting operations, crane personnel and safety training. EnerMech also has a significant presence in Norway following the acquisition of Bjørge ASA’s crane division in October 2008.
In April 2009, EnerMech extended its presence in the Middle East with the acquisition of UAE free zone companies Pavitt Energy Limited and Scotia Oilfield Trading FZE which has since been integrated in to the EnerMech group. Investment totaling £5.1 million ($7.5M) has been made in equipment stock rental, improvements at our bases in Ras al-Khaimah and Doha, and plans have been drawn up to build a new £3 million facility in Jebil Ali, Dubai which will be ready in 2012.
In April 2010, EnerMech acquired Aberdeen based hydraulic engineering specialist Norson Power in an £11 million deal. Norson Power provides hydraulic pipework installation and designs and manufactures hydraulic equipment for the oil, gas and marine industries.
EnerMech recently agreed a £24 million funding package with Lloyds Banking Group and, together with private equity provided by Lime Rock Partners and shareholder finance, has in place £40 million to support organic growth and further acquisitions.
In August 2010, EnerMech invested £4 million to acquire its 16 acre headquarter site in Aberdeen. A further £840,000 is being spent on refurbishments and the construction of new workshops, while another £2 million has been invested in setting up a new Valve Care division which will target the valve supply, testing, inspection and maintenance sector.
EnerMech employs 550 staff at its Aberdeen headquarters and bases in Great Yarmouth, Stavanger, Dubai, Qatar, Ras al-Khaimah, Singapore, Indonesia, China, Ghana, South Africa and Perth, Australia.
Issued on behalf of EnerMech Ltd by Sure Public Relations. For further information please contact Stephen Rafferty on +44(0)7980 598764 or email email@example.com
MEDIA RELEASE posted by Sure PR. You too can post media releases (aka press releases) on allmediascotland.com. To find more, email here.