Aberdeen oil services outfit bought in £6m deal

An Aberdeen firm that supplies equipment including hoses used in the oil and gas sector has been sold to a Finnish buyer in a deal worth up to £6 million.

First Hose supplies hydraulic hoses and other equipment to the oil and gas industry

First Hose, established in 1989, has been acquired by GS-Hydro in a move that the Scottish firm’s founder, Fred Nicol, said would enable it to accelerate growth.

Managing director Nicol, who together with his wife Donna owned the majority of the firm, said he was “hugely proud of the growth achieved, taking the business from start-up to where it is today”.

GS-Hydro said the deal, which involves an initial £4.5m payment, would strengthen its hose management and software services for customers across the North Sea.

Graham Cunning, of accounting firm Campbell Dallas, which advised the shareholders, said the deal showed that, despite the oil price crash, there is still “an active M&A market for quality businesses”.

He added: “It is a perfect example of a great business being bought by a global company with a clear growth strategy.”