Aberdeen-based oilfield service company Dominion Gas announced a £4million-plus acquisition yesterday, which is expected to lead to additional jobs.
It has bought Argon Isotank, which is involved in the leasing of oilfield bulk tanks.
Argon, which is based at Portlethen and also has a site in Glasgow, has around 10 employees.
All staff will transfer to Dominion, including current owners Robert McDonald and JJ Welsh who become directors.
Dominion chief executive George Yule said: “The acquisition of Argon Isotank is another step towards achieving our goal of positioning Dominion Gas as a multi-service oilfield supplier in the global subsea sector.
“The deal will result in a number of additional jobs being created here in Aberdeen, the Middle East, Caspian Sea, Africa and south-east Asia as the company continues to develop.”
The acquisition was supported by Graphite Capital, a mid-market private-equity firm, and the Royal Bank of Scotland, both of which backed the Dominion Gas management buyout for £30million-plus last year and subsequent acquisition of Aberdeen firm Global Gas Supplies in a £22million deal.
Graphite partner Mike Innes said: “We are pleased to be supporting Dominion in its buy and build strategy, which we agreed at the time of the management buyout 16 months ago. The acquisition of Argon Isotank creates an even stronger platform for growth.”
RBS provided acquisition funding of £2million in support of the latest deal, and committed a £3million capital expenditure deal to assist in the growth of the business over the next few years.
Stuart Roberts, head of structured finance at RBS in Aberdeen, said: “This is another significant acquisition for Dominion Gas and one that will further enhance the firm’s product and customer base. Royal Bank has enjoyed an excellent relationship with Dominion’s management team over the years and, latterly, with Graphite Capital. We believe Dominion stands to benefit considerably from the synergies that can be achieved by bringing these two businesses together.”
Dominion has a turnover of more than of £20million, a fourfold increase in the past two years. With this latest acquisition, it employs 85 staff worldwide.