Oil and gas technology specialist Cyclotech has been sold to M-I Drilling Fluids UK, a member of Texas-based fluids engineering group M-I SWACO, for an undisclosed sum.
Oil and gas technology specialist Cyclotech has been sold to M-I Drilling Fluids UK, a member of Texas-based fluids engineering group M-I SWACO, for an undisclosed sum.
Cyclotech uses centrifugal force to separate out water and sand in oil and gas production in the North Sea. The company operates in Aberdeen, Stavanger, Basingstoke and Singapore.
David Hadfield, CEO of Cyclotech, said: ‘We had very favourable prior knowledge of [MI Swaco], which made them an attractive suitor. Our positive views were reinforced through the negotiation process and now we look forward to growing the Cyclotech businesses under the M-I SWACO organisation.’
Private equity firm Maven Capital Partners invested £1.4 million in May 2007 to provide Cyclotech with development capital to expand operations and develop other products. The sale realised an overall return of more than three times the initial investment and an IRR (Internal Rate of Return) of over 50 per cent.
