LOWESTOFT, UK: Tekmar Group, a market-leading technology provider of subsea protection systems has signed a sale and purchase agreement for the acquisition of Pipeshield International for a consideration of £6.5 million from its founder Steven Howlett.
The consideration will be satisfied via £3.0 million in cash and £0.75 million through the issue of 573,833 new ordinary shares in Tekmar to the seller on completion; plus deferred cash payments of £1.5 million on 9 April 2020 and £1.25 million on 9 October 2020.
This is the Group’s third acquisition since its admission to AIM in June 2018 and continues our strategy to acquire synergistic offshore energy engineering businesses with a clear focus on subsea technology and complementary customer bases, which will benefit from being part of a wider group.
Pipeshield broadens our portfolio of complementary technologies, allowing the seamless supply of subsea protection products across the lifecycle of a project, and takes us closer to our vision of being the partner of choice for the supply and installation support of subsea protection equipment to global offshore energy markets.
Pipeshield is a world leading technology provider of subsea concrete mattresses. These mattresses are used in the protection of subsea equipment such as pipelines and power cables within all marine environments, including offshore wind, marine renewables, oil and gas and marine civil engineering.
Following the Acquisition, Pipeshield will continue to trade under its own name from its leased headquarters in Lowestoft and it will remain a separate legal entity within the Group. The business will, however, benefit from the Group’s shared group services. No disruption or change for customers or employees is expected.
James Ritchie, Chief Executive Officer of Tekmar, said: “Pipeshield is a perfect fit for Tekmar. Its products are complementary, allowing us to upsell and expand our offering to clients, realising our Group vision. The business has many similarities with Tekmar from both end customers to markets but also most importantly it fits culturally. The business focuses on technology, as its key differentiator, and Pipeshield has outstanding credentials, which demonstrate its commitment to safety, quality and, above all, its people; these are key values which we embrace across all Group companies. I am truly excited by the prospect of adding the Pipeshield offering to Tekmar’s portfolio and I welcome Steve and his team to the family.”
Steven Howlett, Founder and Managing Director of Pipeshield, said: “Tekmar and Pipeshield have many similarities. We are industry-leading technology providers within subsea protection and share a similar history and culture. I am keen to see the business progress and believe that being part of Tekmar will accelerate the achievement of our long-held growth aspirations. I want to thank the Pipeshield team for all its hard work, getting us to this point, and highlight, to my staff and customers, that this change in ownership will only increase the opportunities for the business and our passion for delivering outstanding technical solutions. Other than that, it’s very much business as usual.”
Edited by Kiran Khan