EnerMech gets £24m in funding to go on acquisitions spree

ENERMECH, the Aberdeen-based oil and gas services business, has secured a £24 million funding package to provide it with more firepower for potential acquisitions.

The deal with Lloyds Banking Group includes the purchase of EnerMech's existing business premises worth 4m and a 10m revolving credit facility with an option for it to rise to 20m dependent on profits growth.

Doug Duguid, managing director of EnerMech, said the deal demonstrated the company's commitment to continued expansion.

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"EnerMech has quickly built up a global reputation in all the major international oil and gas hubs and our ambition is to strengthen the group with further acquisitions in the months ahead," he said.

Formed in 2008, EnerMech provides supply, maintenance and engineering services for offshore cranes, lifting and hydraulic equipment, tools and equipment rental and the training and supply of specialist personnel.

The company employs some 450 staff in the UK, US, Norway, Caspian, Middle East and Asia Pacific regions.

In the last two years EnerMech has acquired businesses including Specialist Maintenance Services and A1 Safety Training Consultants in the UK and Pavitt Energy and Scotia Oilfield Trading in the Middle East.

The most recent acquisition was Aberdeen-based hydraulic engineering outfit Norson Power in an 11m deal completed in April.

Andrew Robertson, relationship director with Lloyds Banking Group's Aberdeen and north of Scotland corporate markets team, said: "EnerMech is a great example of a thriving Scottish business that is in a strong position to grow both domestically and internationally.

"The management team has a proven track record and we are delighted to be supporting their ambitious growth plans with this substantial funding package."