Deal creates 'powerful' player in market
Fraser Hydraulic Power acquired by Royal IHC
Offshore equipment manufacturer Fraser Hydraulic Power Limited has been acquired by Royal IHC.
The undisclosed deal sees the Walker-based firm join Royal IHC’s stable of companies, including its Stocksfield, Northumberland operations.
Following the move, Fraser Hydraulic Power (FHP) will continue to supply products into the offshore oil and gas market and maintain its equipment hire business.
At the end of 2014 the firm moved into custom built, 28,000 sq ft premises at the Neptune Energy Park to accommodate overseas work.
Since its launch 30 years ago the family-owned firm – which employs around 40 people – has grown its international presence and now exports more than 60% of its products.
North East England law firm Swinburne Maddison acted for FHP in the deal, undertaking due diligence, disclosure and negotiating transaction documentation as well as commercial and real estate support.
Peter Fraser, previous owner of FHP, said: “It is a great deal for the future of the business and it will ensure great opportunities for the company’s employees as they carve a place for themselves within a larger operation. Their skills, backed by the global reach of IHC, should make FHP a powerful player in the global market.”
Bram Roelse chief executive officer of Royal IHC said: “The acquisition of FHP fits perfectly within IHC’s strategy to reduce IHC’s dependence on the volatile shipbuilding industry by developing OPEX activities. The new FHP facility offers an ideal opportunity for IHC to strengthen its position in the offshore market, centralise and further expand the offering of rental equipment, and provide a broader service offering to our customers.”
Leading the deal for FHP, Swinburne Maddison partner Martyn Tennant added: “The deal has presented a few challenges – particularly given the jurisdictional differences between the parties and both parties have worked hard to achieve completion.
“There is a very good fit between the two companies and the acquisition will enable the region to strengthen its position within the global supply chain. Royal IHC will use FHP as a platform to develop its rental operation. This will mean that FHP employees can look forward to becoming part of a larger team with an international status that will provide some great opportunities for further growth.”
Royal IHC designs, builds and supplies equipment for the offshore oil and gas, submarine telecoms and renewable energy markets.
The firm employs around 3,000 people throughout the world.
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