OIL services firm TWMA has been acquired by a group of investors that includes the family investment vehicle of transport tycoon Brian Souter and Aberdeen Asset Management amid challenging times for the industry.
Aberdeen-based TWMA, which specialises in helping oil and gas firms manage the waste products from activities such as drilling, said it had come under new “strategic ownership” following a substantial investment by Buckthorn Partners.
The institutions supporting the transaction included Souter Investments, Aberdeen Asset Management and Canada’s BMO Global Asset Management.
The acquisition of TWMA from funds managed by the Lime Rock private equity business provides a vote of confidence in the prospects of the firm on the part of its new owners.
On its website, London-based Buckthorn says sectors of the oilfield services market will provide attractive opportunities as long term structural demand and supply dynamics remain intact in spite of the downturn triggered by the crude price plunge. This started in 2014.
Some services companies have been able to capitalise on oil and gas firms’ efforts to cut costs and increase efficiency.
Buckthorn acquired the Ashtead Technology subsea engineering business with Souter Investments and BMO last summer.
Buckthorn partner Nicholas Gee said TWMA was a leader in the provision of drilling waste management solutions with a strong international profile. He added: “Our objective is to further develop the business both organically and through M&A to expand further geographically and bring new products and services.”
Welcoming the investment, TWMA chief executive Ronnie Garrick said the company had grown significantly in recent years, particularly in the Middle East.
The last accounts filed for TWMA group show it grew pre tax profits to £3.8m in 2015 from £1.6m in 2014.
Revenues increased to £49.1m from £41.4m..
Founded in 2000, as Total Waste Management Alliance, TWMA has more than 500 workers.
Lime Rock first invested in TWMA in 2007, when the business had turnover of around £12m and employed 237 people.
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