The divested business will now trade as KRG Specialist Engineering Services Limited and will continue to operate from its current facilities, providing precision machining services to a number of diversified clients in the oil and gas, aerospace and defence, rail and food sectors. The existing management team of KRG will lead the company with Gerry Hughes as managing director.
Following a strategic review of Proserv’s portfolio, third party machining services no longer complemented the firm’s core offering, so a sale process was activated last year and has today resulted in the successful disposal of the business to GIL Investments (GIL).
GIL is a UK-based private investment firm which acquires controlling stakes in businesses and aims to support their growth over the long-term. GIL has a particular specialism in manufacturing and industrial enterprises and it now possesses a portfolio of 14 companies with a combined turnover of more than £400 million.
Gerry Hughes said “We are very pleased to be able to announce this transaction today which I believe will provide great opportunity for our customers, our suppliers and our staff. We thank Proserv for their support and we are very excited by the opportunity to work with GIL Investments on the next phase of our growth.”
Davis Larssen, chief strategy officer for Proserv, stated, “The Coatbridge business was acquired at a time when Proserv was investing in bringing an alternative subsea tree proposition to the market. Following the industry downturn in 2015, the development plan was reviewed and changed, with this sale representing the final part of our exit from this area of the oil and gas market, enabling Proserv to focus exclusively on its core controls technology.
“The essential attributes of the Coatbridge business remain exceptionally strong and it was recognised that the business is set up to achieve its ambitions under new ownership. I am pleased the existing management team led by Gerry Hughes will remain with the business and take it forward.”
Les Litwinowicz, CEO of GIL Investments added, “KRG has a forty year track record of working with its customers to deliver technologically demanding solutions for their problems. We very much look forward to working with Gerry and his team to grow KRG, both in its core market and in other sectors.”
Bank funding was provided by IGF Business Credit Limited (IGF). GIL Investments was advised by Shoosmiths LLP (legal), Business Strategy Group (commercial) and Mazars LLP (tax). IGF was advised by Pinsent Masons LLP (legal).
Proserv UK was advised by Simmons Energy (corporate finance) and Blackwood Partners (legal).
The exact terms of the deal are undisclosed.
Read the article online at: https://www.oilfieldtechnology.com/special-reports/06022019/proserv-sells-precision-engineering-company-krg-industries-to-gil-investments/