Smith's Group division acquires XPD8
Maven’s third exit as Aberdeen energy firm sold
Glasgow-based private equity firm Maven Capital Partners said the sale has delivered an attractive return on its client funds’ original investment and is the third profitable disposal by Maven’s energy services team in the past year;
In June it achieved a 3.3x return on exit from environmental services and equipment business MSIS.
Last December it sold control systems specialist EFC Group for a return of 3.8x cost.
Formed in 2003, XPD8 is an oil & gas services consultancy offering cost-effective asset management and integrity management solutions to a global customer base, providing bespoke software tools and skilled engineers specialising in asset integrity services.
With bases now in Aberdeen and London, XPD8 has expanded its presence in international markets.
It now caters to a blue-chip customer base that includes Tullow, Aker, Apache, CNR and Wood Group. Integrity services is an area of increasing focus for the oil & gas sector as energy services businesses seek to control costs and maximise production whilst maintaining safety on ageing infrastructure.
Jock Gardiner (pictured), partner at Maven, said: “With Maven’s support, XPD8 management has performed strongly since we invested in the company in 2010 and this exit has achieved a healthy return for our investors.
“Working in partnership with Maven throughout, Mark Cavanagh and his team have built a reputation for excellence and a business that offers best-in-class service in a sector where the ongoing emphasis on integrity services is key for customers. XPD8 is proof that high calibre management teams can deliver growth, even in a challenging oil & gas market.”
Mr Cavanagh, managing director at XPD8, said: “We are excited about the next phase in the expansion of our business on the back of a platform achieved with the constructive support of Maven since 2010, and an encouraging pipeline of opportunities.
“We’ve worked closely with Maven’s Aberdeen team, whose advice, support and knowledge of the sector has been a key part in our success, as well as allowing us to access industry expert advice from other Maven portfolio companies.”
** Maven has invested £5.4m in GEV Group, an energy company based in Hull. The group’s largest entity, GEV Wind Power, is one of Europe’s leading wind turbine blade inspection and repair specialists.