Marine service group James Fisher and Sons is to buy diving equipment firm Divex for up to £33million.
The deal will see UK-based James Fisher and Sons pay an initial consideration of £20m in cash plus a further maximum additional consideration of £13m linked to future profitability targets.
Divex is based in Aberdeen with operations in Australia, South Africa and Dubai and employs about 240 people.
The firm supplies diving equipment to the offshore oil industry and other sectors. It designs, assembles and distributes a broad range of diving products for commercial and military customers.
Products range from diving helmets and breathing apparatus to large saturation diving systems and decompression chambers suitable for multi-occupancy.
The company's turnover in the year ended 30 November 2012 was £34.2m with an EBITDA of £4.6m and depreciation charge of £0.5m. Net assets at the same date were £13.6m and gross assets £26.5m.
Derek Clarke and Doug Godsman the current joint managing directors will continue with the business as will Doug Austin managing director of Asia and group business development manager.
Nick Henry, CEO of James Fisher and Sons, said: "Divex is a market leader in diving equipment for the oil and gas, and defence sectors. It is also the global leader in the design of saturated diving systems, which is a growing market. We believe that it will fit well with our Group both in terms of its market, customers and geographical spread."
Ian Knott, an associate director in KPMG’s corporate finance team in Aberdeen, which advised Divex on the sale to James Fisher and Sons, said: “Divex has been sold to a new owner that recognises and complements the company’s market leading position in diving equipment and saturation diving systems. This deal is a great example of how a successful transaction can be agreed without the need for an extensive auction process, bringing together two businesses that fit together from a market, customer and also a geographic perspective.
“The deal is also another example of the continuing strong appetite for M&A in the wider oilfield services sector, whether from private equity and large corporates as purchasers or shareholders looking to realise value. Given the high levels of investment in oil & gas in the North Sea and overseas, this buoyancy is expected to continue for the foreseeable future.”
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