The recovering north-east economy has witnessed a rise in mergers and acquisitions, according to KPMG’s specialist energy team.
Greater diversification, innovation and optimism about mid to long-term prospects in the offshore energy sector are driving deals, said KPMG’s Aberdeen team.
The firm recently advised on the sale of Signum Technology to Trelleborg and GEV Group to Bridges Fund Management.
Other reported deals involving firms in the north-east include:
- Well management firm Exceed’s takeover of Lowestoft-based Managed Pressure Resources
- Centurion Group buying Texas valve technology firm Totalfrac
- ICR Integrity acquiring Middlesex drone firm Sky-Futures
- Ashtead Technology snapped up equipment rental specialist Aqua-Tech Solutions in Louisiana
- Chrysaor bought ConocoPhilips’ North Sea interests for £2 billion.
- Ithaca Energy picked up Chevron’s Uk business for £1.58 billion
The upbeat mood follows a sustained downturn after global oil prices plunged in 2015.
Existing operators have taken technology, skills and experience from oil and gas sector into growing markets such as renewables and liquid natural gas.
Robert Logue, head of energy services M&A at KPMG, said: “We’ve definitely witnessed an upward shift in momentum recently, with much of that activity driven by a desire to diversify and the use of new technology/products to access new markets.
“Some established players are diversifying from the upstream oil and gas market, and moving towards renewables, while other new entrants are arriving, with a bigger focus on technology and innovation to drive down costs.
“What is clear is that we’re still in a period of uncertainty with the current oil price environment and the current political and macro-economic climate.
“However, we have seen positive signs that the market is demonstrating a real sense of resilience and a determination to shape a new sustainable, long-term future with companies who have a technically differentiated product or service seeing growth prospects across a number of energy end markets.”
