Carlyle Group Buys EnerMech

Carlyle Group Buys EnerMech
Aberdeen-headquartered EnerMech has been acquired from Lime Rock Partners by global alternative asset manager The Carlyle Group for an undisclosed sum.

Aberdeen-headquartered EnerMech, a services company focused on the energy and infrastructure sectors, has been acquired from Lime Rock Partners by global alternative asset manager The Carlyle Group for an undisclosed sum.

The transaction is expected to close in the fourth quarter, subject to customary anti-trust and regulatory approvals. Capital for the investment will come from Carlyle International Energy Partners (CIEP), a $2.5 billion fund that invests in the global oil and gas sector outside North America.

EnerMech employs 3,500 staff across 40 locations in the UK, Norway, the Middle East, Caspian, Asia, Africa, Australia and Americas. The company works on large scale projects across the oil and gas, LNG, renewables, defense, power, infrastructure and petrochemicals sectors. 

EnerMech was formed 10 years ago by Chief Executive Officer Doug Duguid and Chief Financial Officer Michael Buchan, both of whom will remain with the company in their current positions.

“We are excited to be partnering with CIEP, whose expertise and track record in the energy space will provide valuable support for our strategy and next phase of growth,” Duguid said in a company statement.

“We are very pleased with the strong support we have enjoyed from Lime Rock over the last decade in building a thriving and sustainable business. This transaction is a natural progression in the life of any ambitious company and with the backing of Carlyle Group, which enjoys extensive relationships in the upstream and downstream sectors, we will be focused on doubling the size of the business in the next five years,” he added.

“For our staff and clients, it is very much business as usual, with the caveat that we will be identifying target businesses which will strengthen our integrated offering and introduce increased efficiencies for our end-users,” Duguid continued.

Marcel van Poecke, head of CIEP, said EnerMech is an “attractive, well-positioned international integrated energy, infrastructure and industrial services company, led by a strong team.”

“The company has multiple avenues for growth. We believe potential synergies across CIEP’s portfolio companies as well as the broader Carlyle family are attractive. We look forward to working with the team and supporting EnerMech’s continued growth,” he added.

John Reynolds, co-founder and managing director of Lime Rock Partners, said, “we have greatly valued our partnership with Doug Duguid, Michael Buchan, and the entire EnerMech team as we supported the business’s growth and transformation since inception. We are confident that the company will continue to thrive under Carlyle’s ownership.”

Earlier this month, EnerMech highlighted that it had ranked within the top 60 in the Sunday Times Grant Thornton Top Track 250 League Table. The table ranks Britain’s private mid-market growth companies with the biggest sales. It is compiled by Fast Track and published in The Sunday Times each October.

Back in April, EnerMech announced that it was targeting “further international growth” with two senior management appointments in the US and UK.


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