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Oil service firm Cyclotech snapped up by Houston group

Oil service firm Cyclotech snapped up by Houston group
Oil service firm Cyclotech, which has an operation in Aberdeen, has been sold in a deal understood to be worth around £20million.

Oil service firm Cyclotech, which has an operation in Aberdeen, has been sold in a deal understood to be worth around £20million.

The company has been bought by M-I Drilling Fluids UK, part of the M-I SWACO group of Houston, Texas.

Management of the Basingstoke-based firm were the main shareholders in Cyclotech, but the deal has also proved profitable for Maven Capital Partners – formerly the private-equity team at Aberdeen Asset Management.

Clients of Maven invested £1.4million for a 20% stake in May 2007 to provide Cyclotech with development capital.

Since that investment, Cyclotech has achieved significant growth with annual revenues more than trebling to £15million-plus.

The sale led to an overall return of more than three times Maven’s initial investment.

Jock Gardiner, Maven partner in Aberdeen, said: “This is a real success story for all involved.

“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 (the chief executive) and his excellent team at Cyclotech and helping them to fulfil their growth plans and strategic ambitions.

“The acquisition by M-I SWACO should provide the company with a platform to continue its global strategy.”

Mr Hadfield said: “We are extremely pleased to close the deal with M-I 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 M-I SWACO organisation.

“Maven’s investment 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.”

Cyclotech is described as 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. Cyclotech’s products are used on new and existing facilities, and are said to contribute to extending field life and improving environmental performance. As well as Basingstoke and Aberdeen, Cyclotech has operations in Stavanger and Singapore. It employs around 45 people in total.

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