3sun Group, a specialist provider of products and services to the global energy industry, announced the acquisition of RRC Controls Services Ltd., based in Gourdon Aberdeenshire. The deal, worth a six figure sum, is part of 3sun Group’s plans to expand its footprint in Aberdeen and enhance its service offering to the energy industry.
The acquisition of RRC Controls Services, an established manufacturer of subsea control systems for the offshore oil and gas industry, will allow 3sun to provide the global subsea market with full turnkey engineering solutions. These will be delivered at much shorter timescales from a lower cost base and all elements of a subsea system will be manufactured in-house, rather than being outsourced.
As part of the acquisition RRC Controls Services will be a wholly owned subsidiary and all current staff will be retained. It is envisaged 40 new jobs will be created between Aberdeen, Gourdon and Great Yarmouth within the first 12 months. Many of the new jobs will relate to the development of a range of new products including a deepwater control module.
Graham Hacon, managing director of 3sun Group said, “RRC Controls Services deliver high quality products and services and we have been tracking its progress for some time now. We saw an opportunity to extend beyond our past working relationships through acquisition. Bringing RRC Controls Services into the 3sun Group combines our collective knowledge and resources to provide clients with full turnkey solutions, quickly and cost efficiently. This puts us in a unique market position to serve the global subsea sector whilst extending our oil and gas portfolio. It also strengthens our position in Aberdeen, which is a key market for us. We will retain RRC Controls Services base in Gourdon which represents 5,000 sq ft site comprising of office and warehouse space. RRC Controls Services has completed projects for many of the major oil and gas operators and we plan to draw upon this extensive experience to grow the business further, with plans to increase staff numbers significantly in the next three years.”
The acquisition of RRC Controls Services follows 3sun Group’s recent expansion into Denmark with the opening of an office in Esbjerg, to offer its range of products and services to a wider market and range of companies operating within the area.
Since the company was established six years ago, it has grown from an initial team of one to now employing 240 people across its headquarters in Great Yarmouth, England and bases in Oban, Aberdeen, Chester, Bergen Norway, Germany and in Esbjerg, Denmark. Turnover has increased from £2.4 million in 2010 to £6.5 million in 2011 to £12 million in 2012, and the group is on target to achieve £13.5 million in 2013.
Rapid growth has been achieved following the strategic acquisition of Dawson Energy in 2010, an industry leader in delivering installation and maintenance services for wind turbines, which has allowed 3sun to expand into the renewables industry. This move has in turn led to increased export activity for the group.
The group’s lead advisors for the transaction were Jon Dodge of JDC Corporate Finance and James Hunter of Mills & Reeve both based in Norwich.
3sun Group employs 240 staff and is currently working on several projects in the U.K. and Europe. The group has overseas experience in Europe, Asia, Africa, U.S. and New Zealand.