Dealmakers clinch sale in turbulent financial climate
THE PricewaterhouseCoopers LLP (PwC) corporate finance team weathered volatile financial markets and fluctuating oil prices to help seal the sale of North East manufacturing firm Anson to National Oilwell Varco (NOV), a Fortune 500 ranked US company.
Headquartered in the North East, with offices in Aberdeen, Dubai, Moscow, Singapore and the US, Anson employs around 350 people in the region.
The company manufactures high quality and specialised integrity flowline and valve products for supply to global oil and gas theatres.
The complex transaction was completed in April last year and saw Anson join NOV’s Mission Products Group, which manufactures mechanical components for land and offshore drilling rigs.
The acquisition of Anson complements its pump and fluid expendables products.
During the negotiations, the PwC team had to deal with fluctuating oil prices which varied between $147 (£90) and $40 (£24) a barrel.
The former managing director of Anson commented: “With the business being expanded by the new owners, the given remit has been realised and the expectations of the vendors met and exceeded.
“Without the hard work, dedication and professionalism of PwC’s corporate finance team this would not have happened.”
This is the third significant oil and gas transaction the local PwC corporate finance team have advised on and underlines the strength of the sector in the region.
In 2008, SMD, the leading manufacturer and designer of subsea vehicle systems, was subject to a management buy-out led by Inflexion Private Equity.
PwC was lead adviser to the vendor on the transaction and was subsequently retained as adviser to the company on an ongoing basis.
Last year, the company was named Fastest Growing Business in the North East at the Ward Hadaway Fastest 50 Awards.
The first substantial oil and gas deal the PwC corporate finance team advised on was the sale of Darlington-based CTC Marine Projects to DeepOcean for £75.5m, which completed in October 2006.
After focusing on geographical expansion, CTC recently announced a move into new sectors including renewable energy.
The current economic climate has created challenging trading conditions for our local oil and gas businesses, but the region continues to be highly regarded for its engineering excellence.
This expertise is employed to develop new technology to extract remaining reserves in addition to harnessing energy from alternative sources.
:: Charlotte Pearson is a manager in corporate finance, PricewaterhouseCoopers, Newcastle. Call 0191 269 4121 or email charlotte.pearson@uk.pwc.com
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