Lloyds Bank Commercial Boosts EnerMech with £20 Mln Funding
EnerMech’s continuing success has been further boosted with an additional £20 million funding from Lloyds Bank Commercial Banking in Aberdeen.
The latest tranche of funding will support EnerMech’s organic growth initiatives and will also assist in funding a number of acquisitions the Aberdeen mechanical engineering company has in its sights.
Lloyds Bank Commercial Banking is one of the original financial backers of EnerMech, which was established in 2008, now has 1400 employees operating from 24 locations and is forecasting turnover in 2013 will exceed £225 million.
An initial investment of £24 million was increased to £44 million in 2011 and the latest round of funding takes Lloyds Bank’s support to more than £60 million.
EnerMech provides a range of services to the oil, gas and energy sector including cranes and lifting, valves, hydraulic engineering, pipeline, process and umbilicals (PPU), rental equipment and training services.
EnerMech finance director, Michael Buchan, said: “This additional facility will assist with planned organic growth and a number of acquisitions which will strengthen our operations in Australia and Africa.
“Lloyds Bank has been very supportive of EnerMech since the earliest days and this latest capital investment demonstrates the strong relationship we enjoy with our banking partners.”
To date EnerMech has invested £75 million in organic growth and a further £30 million on a series of acquisitions, including the most recent additions to the group of Valve Tech Engineering in Melbourne and Water Weights International in Cape Town.
Mr Buchan added: “This dual policy of measured organic growth and astute acquisition means we are now an organisation with substantial scale in each of our business lines across many of the key oil and gas territories. Setting out with a clear strategic plan coupled with aligning ourselves with the right group of strategic investors has been critical to this success.”
Stuart Brown, Regional Director, Complex Deal Team, Lloyds Bank Commercial Banking, said: “Supporting fast growing Scottish companies is a key focus for Lloyds Banking Group. In this regard we are delighted to continue to support EnerMech’s management team with this additional funding to fulfil their strategic plans.”
Press Release, April 10, 2013