Published: Nov 10, 2009
Focus: Growth Capital
Maven Capital Partners (Maven) has today completed the exit from Cyclotech Limited (Cyclotech) by way of a trade sale to M-I Drilling Fluids UK Limited, a member of the M-I SWACO group based in Houston, Texas.
Clients of Maven originally invested £1.4 million in May 2007 to provide Cyclotech with development capital to expand existing operations, further develop technological products and pursue an ambitious growth strategy.
Since that investment was made, Cyclotech has achieved significant growth with annual revenues more than trebling.
The sale realised an overall return of more than three times the money on the initial investment and an IRR (Internal Rate of Return) of over 50% for Maven clients.
“This is a real success story for all involved,” said Jock Gardiner, Maven partner in Aberdeen. “The capital we provided enabled Cyclotech to fast-track their growth and, as a result, they have attracted a trade buyer, helping to realise value for our investors and the management team at Cyclotech.
“We have enjoyed working with David Hadfield and his excellent team at Cyclotech and helping them to fulfil their growth plans and strategic ambitions. The acquisition by MI should provide the company with a platform to continue its global strategy. We wish David and his team all the best going forward.”
Cyclotech is a market leader in the North Sea oil and gas services market, providing innovative separation technologies and processes for the upstream oil and gas industry, based on its proprietary hydrocyclone technology. The technology uses centrifugal force to separate the water and sand in oil and gas production operations. In an industry which places a premium on maximising depleting reserves, the ability to prolong field life is critical. Cyclotech’s products are used on new and existing facilities, contributing to extending field life and improving environmental performance. Cyclotech has operations in Aberdeen, Stavanger, Basingstoke and Singapore.
David Hadfield, CEO of Cyclotech said: “Maven’s investment has allowed us to accelerate our growth plans in terms of geographic expansion and bringing new technology to market. We have benefited hugely, not only from the investment, but also from Maven’s expertise in our sector and a close cultural fit between our organisations.
“We are extremely pleased to close the deal with MI Swaco. We had very favourable prior knowledge of their business, which made them an attractive suitor. Our positive views were reinforced through the negotiation process and now we look forward to growing the Cyclotech businesses under the MI Swaco organisation.”