THE Pirrie brothers' Nevis ­Capital investment firm has led the buyout of a Scottish boiler specialist and is eyeing more deals amid signs the economic recovery is gathering pace.

Nevis Capital acquired a majority stake in Glasgow-based James Ramsay in what is believed to have been a seven-figure deal.

The buy-out allows Nevis to add a firm that specialises in installing and maintaining complex boilers used in places like factories and universities to its portfolio of engineering firms.

This has been amassed using some of the proceeds of the £62m sale of the LCH Generator business built by John and James Pirrie to Speedy Hire in 2006.

The deal highlights Nevis's enthusiasm for firms with expertise in heat and energy systems. These can be expected to benefit from moves by private and public-sector bodies to try to secure control over such key inputs while hoping to cut costs.

Nevis's portfolio includes the Dieselec Thistle generator business that has been benefiting from increased demand for stand-by power systems.

Nevis said James Ramsay has built a base of blue chip customers in the public and private sectors, with many on long-term contracts.

Established in 1920, James Ramsay has achieved rapid growth in recent years. The business has a multi-million pound turnover and is profitable. It has around 20 employees. David Bell, a partner at Nevis, said the private-equity operation plans to invest significantly in James Ramsay to help maintain growth.

Nevis has experience of helping firms expand into new geographic markets and service areas.

Raymond Shepherd, previously operations director of James Ramsay, retains a substantial minority stake and becomes managing director.

He said: "I'm excited at the prospect of working in partnership with the team at Nevis and believe we have a great opportunity to continue to build the business." Three other engineers had shares in James Ramsay prior to the sale of the company

Mr Bell, a former operations director at LCH Generators, added: "We are beginning to see increasing activity in the deals market and are actively looking to make further investments."

Brian Aitken, a corporate-finance expert and partner in Nevis Capital, said the business is eyeing a number of potential targets and hopes to do more deals in the coming months.

He said following a long period in which the firm had seen relatively few suitable candidates for investment, the number and ­quality of opportunities has increased markedly.

Mr Aitken reckoned this may be partly because the improvement in the economy in recent months has encouraged more business owners to develop the kind of growth plans that may require outside investment.

The change may also reflect the recognition on the part of some people who had been awaiting a return to the boom conditions seen in the last decade, and a corresponding increase in the valuation of their businesses, that their hopes may not be realised any time soon.

"People are now accepting the new normal," said Mr Aitken.

The Pirrie brothers became two of Scotland's most successful engineering entrepreneurs after growing the diesel-engine repair business they started in the grounds of their parents' farmhouse near Balfron in 1980 into the LCH Generators operation. This operated the UK's biggest fleet of portable power sources.