Further deals in pipeline
First Hose deal ‘points to more M&A’ in oil sector
Bridge-of-Don-based First Hose has been sold to Finnish firm GS-Hydro in a deal highlights how the oil and gas sector is well-positioned for further merger and acquisition activity, according to chartered accountants Campbell Dallas.
Graham Cunning (pictured), corporate finance partner with Campbell Dallas and adviser to the shareholders, said that despite the oil price crash last year, there is still an active M&A market for quality businesses.
“While the downturn has been painful for many, it has also brought opportunity for growth-oriented businesses to position themselves for the upturn. The acquisition of First Hose by GS-Hydro is a perfect example of a great business being bought by a global company with a clear growth strategy. This is a good time to sell a quality business, and also for strategic buyers to execute their M&A growth plans, in preparation for the next stage of the economic cycle.”
Fred Nicol, managing director and majority shareholder of First Hose, said: “My wife Donna and I are hugely proud of the growth that we have achieved at First Hose, taking the business from start up to where it is today. That’s in no small part due to the commitment of our employees, and the support of our customers and suppliers. Being part of GS-Hydro will allow First Hose to accelerate our growth plans together.”
Chris Hargreaves, managing director of GS-Hydro UK said: “This acquisition is an important step in delivering GS-Hydro strategy. We are delighted to have acquired First Hose which will significantly strengthen GS-Hydro’s position in the offshore after sales market in the UK.”
GS-Hydro is a global supplier of non-welded piping solutions for use in primarily hydraulic applications in marine and offshore industries as well as in land-based segments such as the pulp and paper and metals industries. The company has 700 employees in 17 countries with its head office in Espoo, Finland.
First Hose, established in 1989, provides offshore rig supply hoses, hydraulic hoses, instrumentation, adapters and fittings.