Workers at Muir of Ord-based Ross-shire Engineering (RSE) are sharing a £1.3 million bonus pot after an international private equity firm acquired a stake in the business.
The new investor is MML Capital Partners, which has offices in London, Dublin, New York and Paris.
RSE employs more than 1,500 people across its UK-wide operations.
The exact size of the stake that was sold is undisclosed, but it is believed to be a significant minority interest. The value of the transaction is also undisclosed.
The Global Energy Group connection
RSE continues to be majority-owned by Inverness-based investment group Envoy, which emerged from a carve-up of Roy MacGregor’s Global Energy Group in 2019.
One of Mr MacGregor’s sons, Iain, is Envoy’s chief executive.
Launched by managing director Allan Dallas in 1982, RSE is a specialist mechanical and electrical engineering business.
Strong demand for its innovative water treatment systems has driven growth in recent years. Revenue has ballooned from £60m to more than £200m since Envoy and RSE bosses teamed up to acquire the business from Inverness-headquartered Global four years ago.
RSE has also made a string of acquisitions since the buyout.
Iain MacGregor said: “The investment by MML marks a key milestone in the RSE growth story, providing new access to capital and confidence to pursue our ambitious plans.
“Envoy and management will continue to be majority shareholders in RSE, backed now by a private equity firm with international experience and reach. Our decision to partner with MML was founded on shared values and a goal to change the way water companies and industrial water users enhance their treatment processes.”
Mr Dallas added: “We do not expect this change to affect our employees, other than in a positive way. The partnership with MML will help us accelerate the growth of the business safely, providing high quality jobs, promotion opportunities and long term employment.
“We also expect RSE to advance beyond UK shores, taking its innovations internationally.”
RSE’s MD said the company’s success was driven by its workforce.
He added: “With this in mind, we have sidelined a £1.3m bonus package to be shared across our employees.”
MML said Iain MacGregor and RSE founder Allan Dallas would help continue RSE’s “impressive growth journey”.
It added: “With MML’s investment and under the continued leadership of Iain MacGregor and Allan Dallas, RSE is well-positioned to continue to drive transformational change across the water industry.”
Richard Mayers, managing partner of MML’s UK partnership fund, said the private equity firm had built a “strong relationship with Iain, Allan and the team over two years.”
He continued: “This has demonstrated our strong alignment on strategy and values, particularly on building sustainable businesses.
“The water sector is experiencing significant change. RSE is well-positioned to help the industry innovate to deliver better quality water for consumers and the environment.
“This is an incredible team and we are fortunate to be partnering with them at this stage of their journey.”
Conversation