Published: Apr 06, 2014
Focus: Growth Capital
Maven is pleased to announce that it has invested £7.5 million in support of the £14 million MBO of RMEC, a specialist mechanical and hydraulic engineering company. This is Maven’s seventh oil and gas transaction completed over the past nine months, and takes our total investment in the energy services sector to over £30 million during that period. The investment in RMEC was funded by a syndicate comprised of Maven client VCTs and a number of high net worth investors.
Forfar-based RMEC specialises in the manufacture, maintenance, repair, testing, recertification and rental of well services equipment for the oil and gas industry, has 20 staff and a turnover of £9 million in FY14. The investment from Maven will enable RMEC to fast-track its growth in the North Sea, expand its rental fleet, further develop workshop and storage facilities, and bolster the management team. Bryan Fagan, formerly Sales Director at Dominion Gas has joined the business as incoming CEO as part of this transaction.
Jock Gardiner, Partner at Maven, said: “RMEC is operating in a rapidly growing market and has the opportunity to capture significant market share. The business has built-up an excellent reputation in the market for the speed, flexibility and quality of its service. Its comprehensive range of tools are capable of performing work to the highest safety and reliability standards and this has led to the business securing a number of contracts with large blue-chip clients.”
“The number of transactions Maven has completed in the energy services sector within the past year demonstrates the strong pipeline of M&A activity in oil and gas and underlines our ability to identify and work with dynamic companies, supporting their strategic development and operational growth.”
RMEC will be led by the newly appointed Managing Director, Bryan Fagan, who was formerly part of the management team which successfully sold Dominion Gas to Praxair and will bring a wealth of experience of the oil and gas sector. Prior to joining Dominion Gas as sales director, Mr Fagan led sales for Phoenix Polymers.
Major RMEC shareholders and founders, Alan Ramsay and Stuart Mathers, will remain as part of the management team which will lead an ambitious growth strategy focused on establishing the business as a market leader in the rental, sale and service of equipment for well services.
Bryan Fagan, Managing Director at RMEC said: “RMEC has a strong platform on which to build. This capital injection will fast-track our aim of becoming a major player in well services, offering a competitive solution with a best in class, personalised service.”
Corporate finance specialists to the energy sector, Simmons & Company International Limited advised RMEC’s founders on the deal.
Nick Dalgarno, Managing Director of Simmons in Aberdeen added: “This is an excellent deal for the founders and new investors, realising the value of the current business and setting the company up for significant future growth. It underlines our ability to support fast-growing local enterprises and RMEC will undoubtedly benefit from this partnership with Maven, which has a proven record in working with management teams to deliver strategic goals.”