EnerMech Receives £90 Million Funding Package
Two leading banks have joined with original lender Bank of Scotland to provide a £90 million funding package for oil and gas engineering group EnerMech.
EnerMech said the addition of Norwegian bank DNB and HSBC to form a ‘banking club’ reflected the requirements of a company which in five years has established a global footprint of more than 30 locations and has grown its workforce to over 1,800.
The extra funds will be used to invest in new equipment, additional facilities and in expanding the workforce as EnerMech continues a growth strategy which will see revenues rise to £280 million in 2014 and the total number of employees increase by 700 to 2,500.
The international reach of the banking club will allow Aberdeen-based EnerMech to consolidate its overseas banking arrangements. Bank of Scotland will remain the lead bank and has refinanced a £60 million package as part of the new arrangement.
The funding arrangement follows an increased investment earlier this year by private equity specialist Lime Rock Partners which supported the acquisitions of Vicon Services in Australia and U.K.-based Total Reclaim Systems.
To date EnerMech has invested £30 million on acquisitions, £80 million on organic growth and has put aside a further £15 million for future acquisitions.
Simmons & Company advised EnerMech on the refinancing package with legal support from Burness Paull. Legal advice to the banking club was provided by Blackwood Partners with financial due diligence undertaken by KPM.