EnerMech have hit the acquisition trail again with the purchase of Bjorge ASA's crane division.
The deal gives Aberdeen based EnerMech a significant entry point to the lucrative Norwegian North Sea crane and heavy lifting sector.
The value of the deal is not being disclosed but will see EnerMech take over all contracts, equipment and personnel connected to Bjorge's crane activities at Stavanger and Haugesund, while operations at both the existing locations will continue for the foreseeable future.
Bjorge's crane division head, Trond Moller, has been appointed general manager of the new company, EnerMech A/S, and it’s anticipated all of Bjorge's 30 crane staff will transfer to the new entity.
EnerMech will be seeking to strengthen Bjorge's existing contracts with Talisman, StatoilHydro and Teekay while making significant capital expenditure investment in the Norwegian operation.
Launched in April as an equipment rental company, EnerMech expanded in to the crane and heavy lifting market earlier this month (Oct) with the double acquisition of the UK's second largest independent crane and lifting contractor, Specialist Maintenance Services Ltd (SMS) in Aberdeen, and Great Yarmouth based training provider, A1 Safety Training Consultants Ltd.
EnerMech managing director, Doug Duguid, said, "From the outset we had identified Norway as a market with great potential for us and this acquisition is part of our long term expansion strategy.
"SMS has had a relationship with Bjorge for three years in support of our existing Norwegian and cross border contracts so we were very aware of the company's long standing reputation for excellent engineering skills and identified this was a good fit for us in developing our international business.
"The deal gives us a serious presence in the Norwegian market and we plan to invest heavily in the business in the next few years, in terms of new facilities, equipment and people."
EnerMech has at its disposal a £30 million plus funding package supported by managing director Doug Duguid, fellow directors Michael Buchan, Derek Grant, Phil Bentley and private equity firm Lime Rock Partners.
Duguid added, "We anticipate making a number of further acquisitions to support our different business lines in the next 18 months to two years."
Stig Feyling, Chief Executive Officer of Bjorge ASA, said, "This agreement is the result of long-term efforts to find the best possible solution in order to ensure continued growth and development for our crane and lifting technology division.
"We are pleased to have secured an agreement with a company which pursues a clear growth strategy within the crane sector and one which knows what it takes to succeed in this line of business."