GLACIER Energy Services, the Glasgow based oil services business, has bought an inspection specialist to help it capitalise on booming investment in the North Sea in a deal that will generate £1m plus windfalls for the engineers who developed the firm .
The price of the deal was not disclosed but Glacier is thought to have paid £5m for the Fife-based Professional Testing Services business built by Robert McLachlan and Thomas Shields.
The purchase is expected to help Glacier win more work in the oil and gas and renewable energy businesses by adding services like ultrasonic inspection to its offering.
Loading article content
These can help firms ensure the integrity of production assets.
Scott Martin, chairman of Glacier, said the deal reflected the private equity-backed firm's faith in the potential of the UK North Sea. He said: "The UKCS (United Kingdom Continental Shelf) continues to hold significant growth potential for us."
Glacier said Professional Testing Services has significent experience in the asset construction market with long-standing agreements with firms like Burntisland Fabrication. It has worked on assets used by giants such as Shell and E.On.
The deal is the third completed by Glacier since it was formed through a management buyout of MB Oil & Gas in 2011, backed by Maven Capital Partners and Simmons Parallel Energy.
"We continue to pursue buy-and-build opportunities in the marketplace which strengthen our position as a multi-disciplinary service provider," said Mr Martin.
Glacier said the enlarged group would have annual turnover of more than £25 million and around 200 employees. Professional Testing Services has £6m turnover and 55 employees.
Glacier bought Newcastle-based Site Machining Services in 2012, and Aberdeen's Ross Offshore in 2013.