ATR Group makes first M&A play since MBO
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Private equity-backed ATR Group has made its first purchase since taking on NBGI Private Equity as its backer in March.
Oil and gas rental services ATR Group has acquired Underwater Engineering Services (UES) with help from NBGI Private Equity (NBGIPE).
In March ATR Group underwent a management buy-out, with a new equity and debt financing package worth £20 million put in place to support its M&A strategy.
That move followed the Aberdeen-based business' decision to launch a management buy-in back in 2007, with backing from Maven Capital Partners.
According to ATR Group, the purchase of UES, for an undisclosed amount, strengthens the company's existing subsea capabilities and 'demonstrates the Group's commitment to investing in this dynamic, fast growing market.
Fellow Aberdeen-headquartered UES focuses on the rental and supply of marine and subsea support equipment to the diving, remotely operated underwater vehicles and survey sectors of the offshore industry.
Lawrence Dean, investment director at NBGIPE, comments, 'The strategic fit between ATR and UES is very strong.
'Both management teams recognise the value in an integrated surface to subsea model and are motivated by the significant opportunities that will come from working together.'
On the back of the new acquisition, ATR Group will have a reported turnover in excess of £20 milllion and will see its staff count rise by 15 per cent. Jeff Riddoch, managing director at UES, will continue to lead the business with its current management team.
Keith Moorhouse, chief executive of ATR Group, adds, 'We intend to invest substantially in UES for growth without losing its core focus and speciality.'•
NBGIPE now manages €900 million across a number of funds in the UK and across Europe. During 2011, NBGI completed 11 new investments and 13 follow-on investments across all of its funds.