INTERNATIONAL oilfield specialist Glacier Energy has bought out Newcastle-based Site Machining Services in a bid to double sales over the next three years.
The acquisition is a first for Glacier following its formation around the management buyout of MB Oil and Gas in 2011, including pipeline machining company Roberts and welding services specialist Wellclad.
Aberdeen-based Glacier said the deal involved a seven-figure sum.
Site Machining Services, is a provider of pipe cutting and preparation services to the global oil and gas industry, and has grown strongly since it launched in 2006.
Jeff Milne, founding director of Site Machining Services, will remain with the business alongside his existing staff of 12 and will play a key role in driving forward its development as a Glacier company.
The firm will continue trading under the Site Machining Services label. Glacier Energy Services’ combined business operations now has a turnover approaching £10m, with 60 staff working across the UK and international markets from its operational bases in Aberdeen, Glasgow and Newcastle.
Glacier chairman Scott Martin said buying Site Machining Services was a natural progression for the company and hopes to grow the Newcastle workforce by 18 in the next three years.
He said: “We’re going to be looking to invest in more equipment for that business under Glacier as well as recruit technicians, both experienced and at trainee level.
“Site Machining Services does some work in offshore markets so we’ll be looking at international, not just North Sea growth.
“This agreement is a result of, and built on, many years of quality work we have done with Site Machining Services.”
The acquisition was enabled by further investment from Maven Capital Partners and Simmons Parallel Energy, which together invested £8m in Glacier’s purchase of Roberts and Wellclad in 2011.
At the start of this year, the oil and gas firm signed an initial three-year agreement with Newcastle-based BEL Valves potentially worth up to £2.5m a year. The deal, with two one-year options, will also see Glacier invest in new facilities and resources in Newcastle.
Once in place, Glacier said it intends to expand its specialist welding and fabrication business in the North East.
