Member Article

NVM Private Equity invest £5 million in Aberdeenshire business

Private equity house NVM have invested £5 million in Aberdeenshire oil and gas technology business Arnlea as part of a management buyout.

Newcastle-based NVM backed managing director Allan Meritt in his buyout of the firm which specialises technology for asset management within the oil and gas sector.

The deal includes Arnlea’s sister business, NexusAB, which provides integrated quality assurance and technical inspection technology and services.

Both businesses will now become part of the Arnlea Holdings group and the funding from NVM will support product development and international expansion.

Allan Meritt was already well-known to NVM having taken on the role of Chairman on the board of NVM-backed Abermed, a provider of occupational health and remote medical services.

He successfully led the Abermed management team until the business was subsequently sold to International SOS in 2009.

Allan said: “I am very excited about the Arnlea opportunity. The demand for our inspection and tracking solutions is growing rapidly, so the business is perfectly poised, with established and new products being delivered into an industry sector where we already have a market-leading position.

“We have an excellent team, which provides a solid base upon which to build. I am really looking forward to working with NVM again and I am confident that, with the continued support and enthusiasm they have already shown, we will succeed.”

Mauro Biagioni, North East director of NVM Private Equity, added: “We are delighted to back an experienced and high quality management team from two businesses that have the potential to create a large international company. Allan and the team delivered significant growth in 2013, more than doubling the group’s revenues.

“This demonstrates the capability of the team to take their business forward to the next stage, and we look forward to supporting them on this journey.”

Rod Wilkinson and Chris Wilson from KPMG’s Newcastle-based corporate finance based team advised the management team. Rod Wilkinson, head of KPMG’s Corporate Finance team in the North East, commented: “KPMG were delighted to advise on this successful transaction. Through combining two quality businesses, Allan and the team have created a fantastic platform for growth and now, with the support ofNVM, have the backing to significantly expand Arnlea’s portfolio and international footprint.

“This transaction represents another great example of how growth capital is being used to drive accelerated growth for a number of SME businesses in the Oilfield Services sector.”

This was posted in Bdaily's Members' News section by Tom Keighley .