Oil and gas sector could heat up takeover activity

MId-market takeover activity in Scotland was flat last year but could take off thanks to the buoyant oil and gas industry.

The latest Unquote-LDC regional mid-market barometer, which tracks UK private equity transactions, shows the £5 million to £50m bracket in Scotland was flat in 2011, with ten deals. There were no Scottish deals in the £50 to £150m sector.

But LDC Scotland director James Rodger said there are signs that the current year should be livelier north of the Border – in particular in the oil and gas sector, where company performance is linked more to global energy markets than the domestic economy.

He said: “This year should be a busy one. There are a number of privately owned and private equity financed businesses whose succession and exit plans have been delayed due to uncertainties in the economic climate. These are now coming to market and LDC Scotland has been gearing up to take advantage.”

The firm recently strengthened its Scottish team with the recruitment of oil and gas specialist Mark Kerr.