One of the region’s leading offshore services companies has been sold to a major global firm in a multi-million pound deal which will enable the company to continue its growth in the worldwide offshore energy market. Advisers on the sale were Lovewell Blake and Birketts.
Lowestoft-based Pipeshield International Ltd, which has become one of the world’s leading providers of specialised subsea pipeline protection systems to oil and gas majors and offshore contractors, has been bought by Tekmar Group Plc, an AIM listed market leading-provider of subsea cable, umbilical and flexible pipe protection systems and engineering services.
Pipeshield, which was formed in 1999, has its headquarters at the Quay View Business Park in Lowestoft, and works in the oil and gas, renewables and marine civils sectors. It has manufacturing bases in Montrose, Blyth, (UK); Dammam (KSA); Abu Dhabi, Dubai, Bahrain (UAE); Qatar; Johor (Malaysia); and global site specific operations.
The £6.5m sale will provide a platform for further growth for the company, which has a permanent workforce of 25 and engages approximately 15 contractors at any one time.
Pipeshield Managing Director and founder Steve Howlett said, “This is an exciting next step in the development of Pipeshield as a major global player in our sector. The sale to Tekmar will open up new markets for us, and provide the investment and foundations for further growth.
“I am very appreciative for all the hard work that the teams at Lovewell Blake and Birketts have put in to make this deal happen for me. It has not been a straightforward process but they stuck to the task to see it through to its conclusion.”
Matt Crawley, Lovewell Blake’s Corporate Finance Partner, said, “We are delighted to have advised on this transaction which is a is major deal for one of our region’s leading offshore services companies and demonstrates the continued strength of this sector in the Eastern region. Concluding a sale such of this to an ambitious Plc, that provides a strong strategic fit is a clear demonstration of the depth of Lovewell Blake’s Corporate Finance expertise and our knowledge of the energy sector.”
Ed Savory, Corporate Partner at Birketts, added, “We are very pleased to have been able to advise Steve through the sale process and some tough negotiations to take the transaction through to a successful conclusion. This is another example of Birketts’ expertise in the offshore sector and our ability to advise clients on strategic exits. I believe the deal is perfect for Steve and I wish him and Tekmar a successful and fruitful future in business together.”
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at October 2019.