Module Firm to Benefit from Expansion Capital Deal
Duffy & McGovern is set to embark on its next phase of growth after securing £16 million in development capital and finance from Barclays.
The Aberdeen-based company, which operates in all the world's major oil and gas regions, is growing its fleet of offshore accommodation cabins and building its international presence to meet the growing demand for the sale and rental of accommodation modules in oil and gas provinces around the world.
Commenting on the deal, John Heiton, associate director of leveraged finance at Barclays said: "We have taken on Duffy & McGovern's existing fleet finance as well as providing new finance for around 100 new modules to grow their fleet. This is a long-term commitment which underlines our confidence in the company's strategy and management team. Duffy & McGovern enjoys a market-leading position which we feel can be further exploited in the current market conditions.
"Through this deal and a number of others in the sector, there is absolutely no doubt that Barclays is opening up opportunities in Scotland and building on its oil and gas financing expertise."
The move is part of Duffy & McGovern's ambitious globalization strategy which will see it increase its rental fleet to 370 units. The company currently has 270 accommodation modules in its fleet which serves all the key oil and gas regions in the world and is managed from three global hubs in Aberdeen, New Orleans and Singapore. Over the next six months the company will invest the funds in the manufacture of new modules in all three global hubs. These will include eight US Coast Guard-approved 12-man sleeper modules and four eight-man cabins for the Gulf of Mexico plus eight four-man linkable sleeper cabins for the European market which are already contracted for rental to German energy services firm Bohlen-Doyen. In South East Asia, Duffy & McGovern's fastest growing market, the firm expects to add 20 modules to its fleet over the next six months.
Craig McLeish, managing director of Duffy & McGovern said: "We are delighted to have secured this additional funding from Barclays who were able to provide us with the flexibility and strategic support required to grow our business both nationally and internationally."
Barclays recently announced plans to add to its specialist oil and gas team in Aberdeen where it operates at a global level in both the Exploration & Production and Service sectors. Barclays was advised during this deal by Aberdeen advisers KPMG, Calash and Paull and Williamsons.
- Duffy and McGovern Gains New Deals with the Move to Singapore (Aug 08)
- Duffy and McGovern Gearing Up for High Demand (Jul 23)
- Duffy and McGovern Makes Waves in South East Asia (Jun 13)