Buyout sees fuel group moving into renewables
Oct 2 2008 by Peter McCusker, The Journal
THE purchase of a renewable energy company by an Aberdeen firm will help set it on a rapid growth curve, say its new owners. Hexham-based Econnect, which specialises in wind turbine technology and has been established in the town for 13 years, is now part of the global energy services business the Senergy Group.
Senergy, which sees the move as fuelling its development from its primary base in the oil and gas sector into the renewable energy sector, employs 280 people worldwide and has an annual turnover of £60m.
Nial McCollam, Senergy’s alternative energy managing director, said Econnect would now operate as a subsidiary company with the existing management team and its current 50 staff being retained.
He said: “The attraction of Econnect is that it takes us further into a sector which is growing rapidly.
“This is not a consolidation. There is an enormous capacity for growth with Econnect. We will be working with the management team to drive the business forward.”
Econnect was formed in 1995 and is based on Hexham’s Haugh Lane industrial Estate. It also has offices in Ireland, Australia and New Zealand.
It is a specialist in connecting renewable energy projects across the world and has been involved in 85% of all wind power plants commissioned in the UK last year. Econnect’s founder Guy Nicholson said: “Senergy has an outstanding track record of leadership in the oil and gas industry and our work together in offshore renewables has already shown us that they are committed to, and focused on, expanding their offering in the renewable energy market.
“They are undoubtedly the ideal company to build on the creativity and experience developed within Econnect over 15 years in renewables and our existing clients will benefit from continuity of support and an expansion of services.”
Senergy, which did not reveal the purchase price, started off as an oil and gas specialist. Its headquarters are in Aberdeen with a network of offices in Abu Dhabi, Kuala Lumpur, Perth, London and Stavanger. It specialises in consultancy, engineering services and project management and support.
McCollam added: “This deal represents a merger between two like-minded companies. Both have a track record as dynamic and entrepreneurial, and have a sound understanding of the sector and clients which they serve.
“In coming together, not only is Senergy expanding its expertise and the range of services it can offer the sector, but Econnect is going forward with the backing of an experienced and successful firm.”
This is Senergy’s fourth acquisition of 2008, following those of Aberdeen oil consultants Floyd & Associates, Isis Energy Ltd, of Bath and LEA, Scottish a oil engineering consultancy.
