OTEAC, the Aberdeen-based fire and safety specialist, has bought the HVAC & Refrigeration Engineering business in a £10.25 million deal.
The takeover looks likely to have generated a multi-million pound windfall for the managing director of Aberdeen-based HVAC&R, Raymond Davidson, who had a significant stake in the heating to air-conditioning business. Backed by Lonsdale Capital Partners, the deal provides evidence that financiers still see potential to grow oil services businesses that work in the North Sea in spite of the slowdown in the market following the fall in the crude price since June. London-based Lonsdale acquired Oteac in 2013. David Gasparro, Partner at Lonsdale Capital Partners, said: "We have been very impressed by the HVAC&R management team and it is a natural add on to Oteac. Both companies have seen significant growth in recent years." The chief executive of Oteac, Bill Hogarty noted both companies work in areas in which legislative and regulatory developments are helping boost demand for services. He said: "There are many new avenues to develop and grow by combining these two companies." HVAC&R will retain its name as part of the Oteac Group. Its 108 employees will more than double Oteac's existing staff of 80.
Earlier this month the Hitec Vision private equity firm said it was investing around £100m in a subsea engineering firm that aimed to build a big North Sea business, signalling confidence in the prospects for the area. The new firm, Underwater Integrity Solutions, will use acquisitions to help build a North Sea business run out of Aberdeen. Chief executive Bill Boyle noted firms were trying to boost the efficiency of existing assets.
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