The former subsidiary of Ramco Energy, Ramco Oil Services, which specializes in tubular coating, maintenance and management as well as pipeline coating, will now remain under Scottish control and the new owners have ambitious plans for growth.
"We are delighted with today's deal" says Stewart Cumming. "The Management Buy Out secures the future of the company which has become a leading player in its sector. This is great news for our customers and our 180 staff around the world, half of whom are based in Aberdeen. Retaining Scottish ownership has put a new spring in the step of the senior management team and will ensure the continuity of the high levels of service our customers and partners have come to expect."
Ramco Oil Services which is headquartered at Badentoy Park in Aberdeen was founded in 1977. The company, whose turnover stands at £14 million, also has operations in Norway and Japan and a joint venture with Corus (BSR) in Hartlepool. Its customer base includes Shell Expro, BP, Chevron Texaco, Exxon Mobil, Tenaris, Itochu, Conoco Phillips and Statoil.
Executive directors Stewart Cumming and Malcolm Edward are joined on the board of Ramco Holdings Ltd, the holding company of Ramco Oil Services, by Andy Macfie, managing director of Teasses Capital, and Edinburgh-based financier, Vikram Lall, who initiated the transaction and advised the management team throughout the buyout negotiations. Sir Fraser Morrison, CBE, who chairs Teasses Capital Ltd becomes non-executive chairman of RHL.
Commenting on the deal, Macfie says: "The strength of the management team and the customer service culture were key factors in our decision to invest in the company."
"This gives us a stake in the future of a successful Scottish based company servicing the world's oil, gas and steel industries. We look forward to working with the management team as it continues to serve its existing customer base and grows the business."
Craig Yeoman, director of acquisition finance for Clydesdale Bank, added: "Aberdeen is widely recognized as the oil capital of Europe and this MBO shows that it is ambitious Scottish businesses that are driving the city's continued success. We are delighted to be supporting Stewart and his team and look forward to continuing our relationship with them in the future."
Ramco Oil Services and Teasses Capital were advised by Dickson Minto and Deloitte. The management team was advised by Stronachs and the Clydesdale Bank by Maclay Murray & Spens.
Ramco Energy was advised by Ledingham Chalmers, Ernst & Young and PriceWaterhouseCoopers. The Bank of Scotland were advised by Dundas & Wilson.
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