Engineering firm Nucore Group, of Aberdeen, has unveiled plans for investment in its workforce and rental fleet, as well as a new office in Dundee, following a refinancing.
Beechbrook Capital, a London-based specialist fund manager focused on investments in small and medium-sized businesses across northern Europe, has joined private equity firm Lonsdale Capital and senior management as shareholders in the business.
Financial details of the deal giving Beechbrook a stake and the size of the respective shareholdings were undisclosed.
But is believed the new investor has ploughed in a seven-figure sum.
Meanwhile, a restructuring of Bridge of Don-based Nucore has seen its Oteac and HVAC & Refrigeration Engineering (HVAC&RE) subsidiaries combined and integrated under the group brand.
Mark Fraser, who was Nucore’s chief financial officer for a spell before becoming chief executive in 2019, led the restructure and refinancing and stepped down at completion.
Nucore supplies engineering products and services for hazardous environments in the energy industry globally.
The group was created in 2016 following the acquisitions of fire and safety engineering company Oteac – founded in 1984 – and heating, ventilation, air conditioning and refrigeration specialist HVAC&RE (1999) by Lonsdale.
“As we diversify into new geographic markets and into new sectors, we’ll be investing in the building blocks for growth.”
Mike Bryant, Nucore Group
Nucore said the refinancing would deliver investment in people, research and development (R&D), systems and its rental fleet to support growth and diversification into new sectors and geographical markets.
Last year the company was forced to reduce headcount amid challenging trading conditions, reporting a 121-strong workforce in July, but the tally now stands at 130.
Dundee office opening this month
Nucore has created 17 new jobs in recent months, including apprentice and graduate roles, and aims to keep hiring as it opens a new office in Dundee and targets opportunities in the renewables sector, as well as in Australia and Africa.
The new office in Dundee Technology Park is due to open at the end of this month, initially employing two people but with capacity for six.
Nucore also has a new operating partner, Mike Bryant, introduced by Beechbrook, who said the restructuring and investment meant the firm was “well-funded and well-placed” for growth.
Mr Bryant added: “It builds on the progress already made in integrating the products, services and synergies of the group’s businesses to deliver innovative engineering solutions that give us a competitive edge.
“As we diversify into new geographic markets and into new sectors, we’ll be investing in the building blocks for growth, be that more people, enhanced systems and R&D, or our rental fleet.
“There are exciting opportunities ahead, and we’re committed to playing our role in the energy transition and actively seeking to transfer our decades of oil and gas experience and know-how into renewables and new markets overseas.”