Aberdeen-based mechanical service company EnerMech yesterday announced its latest acquisition.
The fast-expanding oil service group is paying £11million for another Granite City business: hydraulic-engineering firm Norson Power.
Norson had a variety of shareholders including managing director Gordon Telfer and clients of Aberdeen Asset Management.
Norson, founded in 1974, employs 90 staff in Aberdeen and Houston and in the past financial year had turnover of £14million and profits of more than £2million.
EnerMech said Norson’s core business would complement its products and services and would take its 2010 turnover to more than £60million.
EnerMech plans to invest £2million to roll out Norson’s hydraulic services to EnerMech bases in Dubai, Singapore, west Africa and Perth, in Australia.
EnerMech was formed in April 2008 but it has bought six firms to date. Before yesterday’s deal, it had a worldwide workforce of 350.
The acquisition of Norson and the additional growth capital to expand its geographic footprint brings total equity investment in EnerMech by private-equity firm Lime Rock Partners and the EnerMech management team to £41million.
EnerMech managing director Doug Duguid said: “The acquisition of Norson and its staff is a key development in the growth of EnerMech.
“Norson is a well run, profitable business, with the potential for further growth.
“Norson’s expertise and products dovetail extremely well with our existing business lines. Norson has a lot of clients in the drilling and subsea-construction sectors which we can tap into, while its reputation for designing and building top-class hydraulic systems will help us attract new customers in international markets.
“The company is a major supplier of hose and fluid connectors which will complement our own hose and fittings business.
“The acquisition also boosts our expertise in hydraulic engineering and positions EnerMech as being able to offer a much more comprehensive range of services than our competitors.”
Norson’s Houston base will be used to extend EnerMech’s reach in North America and the Gulf of Mexico and to support clients and contracts in Brazil. Mr Duguid said Norson’s management team would remain. It is viewed as a key element in growing the business unit, which will be known as EnerMech Norson. Mr Telfer said: “EnerMech has the capital resources and international expertise which provides Norson with the opportunity to penetrate new markets. It’s envisaged our workforce will increase and the deal brings exciting opportunities for existing and future employees.”