Maven Capital Partners invests £5m in the MBO of R&M Engineering
Maven Capital Partners has invested £5m for a majority equity stake in R&M Engineering (R&M), which provides integrated engineering and fabrication services to the North Sea oil & gas industry. This investment is the 6th new deal Maven’s Aberdeen team has completed this year.
R&M operates out of purpose built premises in Huntly (Aberdeenshire) and is one of the few independent companies in the UK with the expertise and infrastructure to carry out large and complex projects including hydraulic, pneumatic and electrical work. The business undertakes all processes in-house including design, machining, welding and final fabrication.
Established in 1979 and now employing around 70 people, the company has developed a reputation as a provider of high quality products and services to a broad customer base of blue-chip oil & gas operators and tier 1 contractors. The energy service sector is currently benefitting from record levels of investment, as ageing asset infrastructure is driving the need for ongoing fabric maintenance. R&M is well positioned to benefit from this activity due to the established relationships it has with some of the most active operators in the sector.
R&M has enjoyed a sustained period of organic growth in the North Sea in recent years, with turnover approaching £15m, and is now starting to complete work on a “build to ship” basis for overseas customers through its existing key relationships and their connected subsidiaries. Maven will provide strategic support to R&M through its next exciting phase of growth. The business will now also look to develop into new markets through a Laser Survey & Scanning Division, which will provide a 3D survey capability using advanced laser scanning technology and software. This will allow R&M to offer customers a significant additional benefit, through a survey that creates a 360o wrap-around image with outstanding accuracy.
The business will continue to be supported by the founder and chairman Robbie Mackay, as a non-executive director, alongside R&M’s current Managing Director Alan McLean who will continue to lead the R&M management team, with Ronnie Mackay as Finance Director.
Jock Gardiner, Partner at Maven said: “This is a very attractive investment for Maven Client Funds. R&M provides specialist manufacturing and engineered solutions to the oil & gas sector which are in demand globally. With the senior management team’s extensive industry experience and contacts, we expect R&M to continue to exploit new opportunities both in the North Sea and overseas. We look forward to working with the team to drive the business’ undoubted growth potential.”
Robbie Mackay of R&M Engineering commented: “We are absolutely delighted to have Maven on board. They are a strong partner to have to enable the expansion and growth of the business.”
Alan McLean, Managing Director of R&M Engineering, commented: “This is an exciting time for R&M Engineering. We are looking forward to a bright future working together with Maven. This new partnership will not only allow us to drive our business forward but will also enable us to provide our valued clients in the oil and gas industry with an expanded range of services.”