Offshore services provider OEG, which employs more than 200 people in Aberdeen, is within days of completing another takeover deal which will extend its string of five acquisitions in the renewables sector during 2023.

Headed by chief executive John Heiton, the company has super-charged its diversification into the offshore wind sector since US investment group Oaktree Capital took a controlling stake in the business in March of last year. This has been backed by a $140m (£112m) term loan and revolving credit facility from a syndicate of banks secured in October.

READ MORE: Aberdeen's OEG set to complete fifth acquisition of 2023

“We have one [acquisition] that is almost across the line in terms of signing," Mr Heiton told The Herald. "It’s meant to be this week, or worst case next week.”

He added: “We have another one which we expect to complete at the end of quarter one, and then we have multiple discussions going on other ones that will be further down the pipeline.”

OEG is aiming to become a $1 billion business within the next three to five years as it expands its presence in the growing renewables sector. Set up at the end of 2020, this division - which provides services for the development, construction and maintenance of offshore wind farms and other marine energy businesses - hit a milestone to account for half of OEG's revenues in 2023.

“We have built the renewables part of the business which is the key growth driver we are trying to expand through a mixture of acquisitions and organic growth," said Mr Heiton, who has been chief executive since 2008.

"I can kind of plan for organic growth and see the visibility of the market, but what I can’t plan for is the acquisitions, so [reaching the $1bn revenue mark] is affected by the timing of those deals.”

The company says it achieved pro-forma revenues of $434m in 2023, a 35% increase on the previous year. This was driven by growth in both renewables and OEG's traditional cargo carrying operations which transport equipment, food and other supplies to and from offshore platforms.

The Herald: John HeitonJohn Heiton (Image: OEG)

Asked about the company's profitability, Mr Heiton said: “We are a private company, so we are quite conservative in what information we give out, but our margins have grown…and our profits would have grown by more than our revenue growth.”

OEG now employs more than 1,000 people globally following last year's acquisitions of subsea cable construction specialist Pelagian, submarine cable installer 23 Degrees Renewables, survey specialist Geosight, subsea specialist Bluestream, and topside services provider Marine Coordination Services. 

Based in the Netherlands, Bluestream Offshore and Marine Coordination Services will form a new hub for OEG in mainland Europe.

Mr Heiton said the group is firmly placed for further growth as the offshore energy industry continues its structural transition, and will continue leveraging its core capabilities honed throughout its 50-year history.

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Following a "transformational" year in 2023, the outlook for the coming months is said to be positive with the offshore wind sector forecast to grow at approximately 22% annually to reach 344GW of operating capacity by 2035. Meanwhile, global demand for oil and gas is currently expected to rise by 1.1 million barrels per day in 2024.

OEG is also set to expand another new part of its business which supplies cryogenic tanks to the industrial gas market, with a focus on markets in Asia and the Middle East.

"2024 looks set to be another year of strong growth for OEG as it leverages its established profile, expanded service offering, global footprint and strong balance sheet to achieve its near-term target of generating $1bn in annualised group revenue in the next few years," Mr Heiton added.

OEG is majority-owned by Oaktree, which also lists Glasgow-headquartered temporary power specialist Aggreko among its portfolio of companies. About 10% of the equity in OEG is owned by members of its management team.