Motive Offshore secures multi-million pound investment from EV Private Equity to support growth plans
A North East equipment specialist has secured a multi-million private investment as it strives towards its ambitious growth strategy to become a £20 million EBITDA business in the next five years.
Motive Offshore Group has agreed a deal with EV Private Equity (EV) which will result in a multi-million pound investment being injected into the business to allow accelerated growth in the emerging oil, gas and marine market.
The move will see EV take a shareholding stake in the business and two positions on the board as Motive focusses on growing organically with the manufacturing and delivery of new products and services whilst starting the acquisition trail to scale up the business and increase its global presence.
Launched in 2010 by James Gregg and Dave Acton, Motive, which is headquartered in Boyndie, Banff, with additional offices in Aberdeen, Houston and the Middle East, specialises in the manufacture, rental and inspection of high quality marine equipment to the onshore and offshore oil and gas and marine industries.
Recording its highest turnover to date in 2017, the business has since achieved a 50% increase for 2018 with a £15million turnover, increasing its team by 40 in the past year to 100 employees.
Motive managing director, Dave Acton, said: “We have been in discussions with EV for the past 12 months and we are excited about the future of Motive as we move forward together with the investment and the expertise that they bring to the board. We have succeeded to come through difficult times in recent years and we are now in a very strong position to accelerate our growth strategy. This deal gives us the opportunity to build on our rental fleet to deliver new products and services and to open bases in additional geographical locations.
“We are firmly on the acquisition trail for companies that complement our supply and would demonstrate scalability and access to new regions and a wider client base. We are actively in early discussions with around 30 UK and international businesses with a focus on becoming the key global supplier for back deck equipment.”
Facing real risk of closure during the downturn, Motive has succeeded in turning around the fortunes of the business through careful restructuring and with a strategy to grow organically and through acquisition, Motive is targeting a £30 million EBITDA in the next five years to 2024.
EV Private Equity has been one of the most active investors in the oil and gas sector in recent years, having concluded other successful deals with Aquaterra Energy, Enpro Subsea and Bluware. EV’s most recent announcement was the acquisition of Independent Oilfield Services (IOS) by EV portfolio company, WellConnection Group last month.
Tomas Hvamb, investment director at EV Private Equity, said: “We have a strategy of partnering with businesses with international growth ambitions, which can deliver more value to clients at lower net costs. Motive very much fit this criterion, as well as having a very ambitious and hungry management team and an existing good reputation, all of which were attractive to us.
We can see significant growth in Motive’s sector in the coming two to five years and with our specialist energy expertise and industry experience, we can work with the team at Motive to drive the business forward and reach its full potential.”
As the business now focusses on its ambitious growth plans, former Hydrasun COO, Bob McAlpine, has also been appointed chairman of Motive Offshore Group.
The deal with facilitated by Hall Morrice Corporate Finance Ltd as deal initiators and advisors and Blackwood Partners as legal advisors to Motive management, with Deloitte and DLA acting for EV Private Equity.