ENGINEERING firm HCS, which specialises in hydraulic systems for the oil and gas industry, has unveiled plans to expand into Aberdeen after changing hands in a £9 million deal.
The Glenrothes-based firm plans to open a base in Europe’s oil capital following the management buy-in. The deal was backed by Front Row Energy Partners and private equity firms Maven Capital Partners, based in Glasgow, and Simmons Parallel Energy Fund.
Simmons managing director Frank Summers said: “Drawing upon our collective energy industry experience, we and our co-investors see excellent opportunities ahead to create value within the company through fast-tracking its development.
“With the senior management team’s extensive industry experience and contacts, we expect HCS to quickly exploit new opportunities both within the North Sea and internationally.”
HCS, which generated turnover of £7.8m in 2012, employs 55 people. Its management team will be led by Front Row director Brett Lestrange. Graeme Coutts, former executive chairman of oilfield services giant Expro, will chair the company.
Tony Kitchener, another Expro veteran, will become business development director, while Kenny Balfour will act as chief operating officer.
Maven partner Jock Gardiner said: “This is a very attractive transaction for us. HCS with its niche position in a fast-growing market and robust management team will undoubtedly deliver results for our investors.”
Maven manages the £113m Scottish Loan Fund on behalf of the Scottish Investment Bank.