Scottish engineering giant Clyde Blowers Capital (CBC) has sealed its second multi-million-pound takeover in a month, with the promise of dozens of new jobs in the North-East.
The company, headed by billionaire entrepreneur Jim McColl, increased the pace of its acquisition activity after snapping up US-based Energy Services International in a £13 million deal.
The agreement comes hot on the heels of a move by Mr McColl last month, which saw him take over the helm of Rosyth-based Parsons Peebles in an eight-figure deal.
Both deals have been funded from a £420m fund that CBC closed last January and the firm is now eyeing further opportunities with the £300m which remains.
Mr McColl said the addition of Texas-based ESI as well as its trading businesses Southern Technology & Services and Vicksburg Marine to the Clyde Blowers portfolio strengthened the company’s offering to the oil and gas industry.
ESI already has a strong presence in the Gulf of Mexico but the immediate focus for the new acquisition will be on gaining a foothold in the energy industry in Scotland, a sector in which Parsons is already active.
In a move that mirrors the stated development strategy for Parsons, CBC is to establish a new service centre for ESI in Aberdeen. Clyde said it expected to create dozens of jobs at each standalone facility, although exact figures were not available.
Mr McColl said ESI was “ripe for growth” and would work to exploit new opportunities in the North Sea as they arose.
“The company had a turnover of $20m last year, and we are confident we will increase that to $100m over the next three to five years, with a great opportunity to expand initially into the North Sea and the Middle East,” he said.
“Over the period we envisage investing up to another $40m in ESI, and the Aberdeen service centre would be the first move in that investment.”
ESI specialises in the manufacture and repair of jacking systems and drilling-related equipment for mobile platforms used for exploratory drilling and offshore windfarm service a market that Parsons also has ambitions in.
ESI’s capabilities also extend to repair and refurbishment services for a large range of pumping, lifting and hoisting equipment used on offshore and onshore drilling rigs.
“We see great potential to transform it into a global operation by offering an extended range of services to our customers and growing our geographic footprint, both through acquisition and organic growth,” Mr McColl said.
“We will also export ESI’s capabilities into other key oil and gas regions across the world, including South-East Asia and West Africa.”
The addition of both Parsons and ESI to CBC’s portfolio comes just months after CBC subsidiary David Brown Gear Systems agreed a multi-million-pound tie- up with Korean engineering giant Samsung Heavy Industries.
The firms are working together on a large-scale wind turbine development project at Methil which SHI hopes will demonstrate the viability of a new 7MW capacity device.
Subject to permissions being granted, the prototype turbine which rises to a height of 196m is expected to be erected later this year.
It is hoped that successful demonstration could lead to a major turbine manufacturing facility being established in Fife, creating hundreds of jobs in the process.