NBGI Private Equity has backed the management buy-out (MBO) of ATR Group, a provider of oil and gas rental services.
An equity and debt financing package worth £20 million has been put in place with what NBGI describes as ‘significant capital allocated to fund the growth of the business’. The deal price has not been disclosed.
Through the MBO NBGI has supported ATR’s existing management team led by chief executive Keith Moorhouse (reinvesting in the business) and operations director Mike Robertson. Euan Leask has been appointed to a new role as chief financial officer.
Aberdeen-based ATR was subject to a 2007 management buy-in, with backing from Maven Capital Partners, and has since gone on to grow turnover to £17 million. The new deal sees NBGI take a majority stake in ATR with support coming from Clydesdale Bank through a senior debt and committed capex funding.
Moorhouse comments, ‘Maven’s investment in 2007 allowed us to take forward our growth plans, providing the necessary capital and expertise.
‘Since then, and despite the a challenging economic climate, we have rapidly grown the business, expanding our client base, our fleet and our global footprint.’
Lawrence Dean, investment director at NBGI, is set to join the board of ATR. He adds, ‘ATR’s market-leading position and robust financial standing provide a strong platform for organic and acquisition-led growth.’
On the back of its five-year investment Maven has realised a return of 1.7 times its initial investment.
Jock Gardiner, partner at Maven, says, ‘This is another profitable exit from an energy services business for Maven client funds and allows the ATR management team to continue its ambitious growth strategy.’