Marine service company James Fisher and Sons plc has bought Buchan Technical Services, a supplier of equipment and personnel to the oil and gas industry.
Marine service company James Fisher and Sons plc has bought Buchan Technical Services, a supplier of equipment and personnel to the oil and gas industry.
The deal was agreed for £4.9 million in cash with a minimum of £1 million paid on completion, satisfied from James Fisher’s existing resources.
This acquisition enables James Fisher Offshore in Aberdeen and its Scan Tech subsidiary in Stavanger to supply a wider range of sale and rental equipment to the offshore industry.
Buchan joins James Fisher Offshore and will re-locate to its site in Oldmeldrum, near Aberdeen, following the completion of extention work on the premises due to finish next year.
Buchan was sold by its founder, Andy Buchan, who remains with the business and becomes a director of James Fisher Offshore.
James Fisher’s chairman, Tim Harris, said: “Buchan represents the latest step in the expansion of marine support services which, in 2006, contributed 67% of group profits. It complements our existing products and services and enjoys a strong position in specialist niche markets.”
Buchan’s managing director, Andy Buchan, added: “Fisher Offshore is a local company and provides an excellent fit with Buchan enjoying a similar approach and customers in the offshore market. I will be staying with and look forward to developing the business within James Fisher Offshore.”
James Fisher received legal advice from David Sheach, managing partner of Stronachs, with EC Hambro Rabben & Partners providing corporate finance services.
Stronachs provided legal due diligence and transactional services including employment advice provided by partner Gillian Donald, with associate Robert McIntosh handling the property issues. Its team also included associates John MacRae and Scott Smith.
Sheach said the firm first advised the company on its acquisition of Monyana Engineering Services in 2005. “The deal completed in advance of the timetable for completion.”
James Fisher appointed Andrew Walker at Johnston Carmichael to manage a financial due diligence review of the target company.
“Johnston Carmichael dealt with James Fisher on a previous deal and, after developing this relationship, were asked to carry out the financial due diligence work,” Walker said. “The diligence team undertook the work within a relatively short time frame.”
The firm’s team included partner Raymond McIntosh and associate Gordon McCarlie with the services of in-house tax specialists.
Buchan designs and supplies centrifugal pumps, hydraulic power packs and umbilical cords and reels to oil and gas organisations, pipeline commissioning and testing companies. It also supplies well servicing, well testing and environmental companies, including the provision of operational manpower.
Its head office is in Inverurie, near Aberdeen, where it employs eight people. In the year to the end of October 2006, Buchan reported an un-audited pre tax profit of £653,000.
