Aberdeen-based oil and gas engineering group EnerMech has snapped up two firms – one in the US and the other in Africa – in deals worth a total of around £4million.
The acquisitions are expected to add an extra £25million to the north-east company’s revenue over the next three years.
In the US, EnerMech has bought Louisiana-based Diversified Oil Field Service (Diversified).
The other deal involves South African valve specialist Control Valve Technology (CVT) and is part of a three-year, £20million investment programme to build a strong infrastructure in Africa.
EnerMech chief executive Doug Duguid said: “Both acquisitions will extend our service provision in the US and Africa, which are both extremely important regions for our future growth.
“At the same time, adding Diversified and CVT to our portfolio gives us an excellent platform to introduce our other services to their respective client bases.
“Both businesses are profitable and highly respected in their sectors and, combined with EnerMech’s more developed infrastructure and fiscal strength, they will be key building blocks as we expand our cranes and lifting services in the Americas and our valves operations across sub-Saharan Africa.”
EnerMech provides a range of mechanical engineering services to the energy industry globally and employs more than 2,000 people across 30 locations.
The company – launched in April 2008 – expects 2014 revenue to exceed £280million. Its 2012 accounts showed pre-tax profits of £11million on revenue which grew 41%, from £102million the year before.
Diversified has a 20-year pedigree of providing crane inspections, repairs and maintenance services to the offshore industry throughout the Gulf of Mexico, in addition to hydraulic repair, testing and design, equipment rental and cranes sales.
Its president, Stan Elmore, and co-owners Nathan Charrier and Ernie Guth along with about 20 staff have transferred to EnerMech.
Diversified’s cranes business will continue to operate from a 17,000sq ft facility at Slidell.
There are plans to open a second Louisiana base at Lafayette to service central Gulf of Mexico operations.
CVT provides servicing, refurbishment and sales of control and safety valves used in the energy, mining and petrochemical industries.
It has executed projects in South Africa, Angola, Nigeria, Ghana and the Middle East.
The firm’s 19 staff and owner Stephen David will transfer to EnerMech. Mr David will lead EnerMech’s valves operations in Africa alongside newly appointed regional director Jean François Roche.
EnerMech said the CVT deal gave it access to a facility to support offshore rig repair work at Saldanha Bay, in the Western Cape, and allow the introduction of new service lines to CVT’s existing client base.