Oil services deal
Wellahead sold to global energy group Serba Dinamik
Mike Coutts: ‘new opportunities’
An international energy services group has acquired Aberdeen-based company Wellahead Engineering in what is believed to a seven figure deal that will give it a foothold in the North Sea market.
Serba Dinamik Group Holdings (SDGB) plans to leverage its partnership with Wellahead as a cornerstone to build its operations and explore new markets in the region.
The deal will also provide Wellahead with investment for growth and access to SDGB’s existing client base. Dow Schofield Watts Aberdeen advised on the transaction, which has been completed during the lockdown period.
SDGB is a wholly-owned subsidiary of Serba Dinamik Holdings Berhad, which is listed on the Malaysian Stock Exchange, and has operations in 26 countries. It has an engineering subsidiary in Falmouth and an office in London. The group employs more than 2,000 people and provides integrated engineering solutions to the energy, oil and gas, water, utilities and other industries.
Wellahead is a precision machine shops with clients including multinational oil, gas and renewables operators.
Founded in 1998 by Mike Coutts, the company employs 15 staff. Mr Coutts will retain a stake in the business and continue in his role as managing director to spearhead its expansion.
Mr Coutts said: “Wellahead has always been a successful business, thanks to our loyal and hard-working team, however this partnership with SDGB will open up new and exciting growth opportunities.
“It will allow us to invest in our equipment, our premises and our people and take the business to a new level.”
A spokesperson from SDGB said: “We are very pleased to establish a strategic presence in Aberdeen, arguably the oil and gas capital city of Europe.
“We look forward to developing our relationship with Wellahead Engineering and hope that this will be a first step towards expansion of our business interests in the region.”
Tom Faichnie of Dow Schofield Watts Aberdeen provided corporate finance advice to Wellahead.
He said: “It is great to see a business the size and scale of SDGB coming into the North Sea market and investing in Aberdeen.
“It is a real tribute to Mike and his team to have secured this partnership which will help both businesses to go from strength to strength.”