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Proserv plans growth drive

PROSERV has secured $215 million (£133m) finance from a group of banks to support a drive for continued growth that could include UK acquisitions.

IN THE PIPELINE: Oil services company Proserv is expected to use bank loans to compete for acquisitions.
IN THE PIPELINE: Oil services company Proserv is expected to use bank loans to compete for acquisitions.

The Aberdeen-based oil services company has agreed a loan and related credit facility, provided by HSBC, Lloyds, Barclays, Santander, Wells Fargo and Royal Bank of Scotland.

Its decision reflects the continued enthusiasm banks have shown for providing debt for companies that are positioned to cash in on the boom in global oil and gas investment.

Proserv is backed by US private equity firm Intervale Capital.

David Lamont, Proserv's chief executive, said: "In light of the difficult economic climate and challenging conditions faced by many businesses globally, to be able to secure refinancing at this level is a huge testament to the confidence that the financial community have in our company."

Proserv said some of the new funding will be used to pay down existing debt.

The company said the remainder will be used to pursue new strategic acquisitions and support its continued growth strategy.

A spokesperson for the company said it will be looking to make acquisitions to support its global growth in regions such as the UK, US and Europe as well as the Middle East, Africa and Australasia.

Proserv said turnover rose from £112m in 2011 to around £196m within 12 months.

Proserv bought Weatherford's subsea controls business in April last year. Weatherford took a stake in Proserv.

In January Proserv bought Houston-based Total Instrumentation & Controls, which specialises in process and control systems equipment.

Steve Hewes, head of Leveraged Finance Scotland at HSBC Bank, said: "Proserv represents a prime example of the positive trends we are seeing in the Aberdeen market, with local jobs being created to help facilitate ongoing and sustained international growth."

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