An Aberdeen-headquartered technology firm has agreed a deal to sell its Coatbridge-based speciality machining business just days after acquiring part of Petrofac.
Proserv, which offers controls technology for the oil and gas sector, said the divested business would now trade as KRG Specialist Engineering Services and continue to operate from its current facilities. It was formerly known as KRG Industries.
The business provides precision machining services to a number of clients in the oil and gas, aerospace and defence, rail and food sectors.
The existing management team of KRG will lead the company with Gerry Hughes holding the role of managing director. Financial details surrounding the deal have not been disclosed.
Proserv said that following a strategic review of its portfolio, third-party machining services were found to no longer complement the firm’s core offering. A sale process was activated last year and has resulted in the disposal of the business to GIL Investments.
GIL has a particular specialism in manufacturing and industrial enterprises and it now possesses a portfolio of 14 companies with a combined turnover of more than £400 million.
Hughes said: “We are very pleased to be able to announce this transaction which I believe will provide great opportunity for our customers, our suppliers and our staff.
“We thank Proserv for their support and we are very excited by the opportunity to work with GIL Investments on the next phase of our growth.”
Davis Larssen, chief strategy officer for Proserv, said: “The Coatbridge business was acquired at a time when Proserv was investing in bringing an alternative subsea tree proposition to the market.
“Following the industry downturn in 2015, the development plan was reviewed and changed, with this sale representing the final part of our exit from this area of the oil and gas market, enabling Proserv to focus exclusively on its core controls technology.
“The essential attributes of the Coatbridge business remain exceptionally strong and it was recognised that the business is set up to achieve its ambitions under new ownership. I am pleased the existing management team led by Gerry Hughes will remain with the business and take it forward.”
On Monday, it emerged that Proserv had expanded its portfolio by purchasing SGC Metering from energy services provider Petrofac for an undisclosed sum.
SGC designs and manufactures flow computer metering systems to gauge metrics associated with hydrocarbon production and enable key calculations. It has a presence in the UK and Norway, with a focus on the Middle East.