The management team of Fife-based HCS Control Systems (HCS) are leading a buy-in buy-out of the business to provide capital for a site expansion.
Stepping in as equity backers in the deal are Maven Capital Partners and Simmons Parallel Energy Fund. The two firms are providing £4.25 million of funding to support the business growth, while extra support is coming from Front Row Energy Partners.
The buy-in management buy-out (BIMBO) is set to allow HCS to expand into the Aberdeen market.
Its engineered mechanical, hydraulic and electrical systems are for use in the subsea oil and gas sector and are currently being employed by organisations including GE and Schlumberger.
As part of the deal, Brett Lestrange has led the transaction and is being brought in as HCS CEO. Lestrange, who has closed the BIMBO alongside Tony Kitchener, Kenny Balfour and Neil McGuinness, has an ‘extensive’ network of industry contacts which will be used by HCS to engage with overseas partners.
HCS views itself as one of the few companies in the sector to meet the increasing demand being seen in markets such as India and China.
Lestrange comments, ‘The investment from Maven and Simmons will provide valuable support in expanding into new overseas markets.
‘The imminent opening of our Aberdeen base, alongside the existing manufacturing facility in Fife, will allow the business effectively to promote its specialist manufacturing and engineering solutions to a wider global customer base.’
Lestrange cites Maven’s experience of SME oil service businesses as the reason the firm will be able to bring ‘strategic input’.
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Joining the management team of HCS is new non-executive chairman Graeme Coutts, who previously was the CEO of former FTSE 250 business Expro and led a 2008 institutional buy-out to Caddover/Goldman Sachs.
Jock Gardiner, partner at Midven, adds, ‘With robust growth forecast for the oil and gas market, the prospects for HCS are extremely positive.
‘We were attracted to HCS as we saw an opportunity to invest in an established and profitable business operating sector we know well and where there are very positive market dynamics.’