Finance News

Arnlea Set for International Expansion Through Private Equity Backed Management Buy-Out

ArnleaArnlea Systems (Arnlea), the leading asset management provider in the North Sea, has received a £5.5 million investment package from a combination of NVM Private Equity and management as part of a buy-out. The investment will provide the firm with capital to fund product development and international expansion.

Arnlea targets the global upstream oil and gas industry, helping operators, offshore floating systems and drilling companies to optimise their inspection and repair processes, ensure compliance with industry regulations, and manage asset integrity during the entire lifecycle. The deal included NexusAB, Arnlea's partner company, which provides integrated quality assurance and technical inspection technology.

The management team of Arnlea includes Allan Merritt, managing director, Martin Slowey, business development director and Jeremy Lai, finance director.

Mr Merritt said: "The NVM investment is a great opportunity for Arnlea; our business is now perfectly poised, as the demand for our inspection and tracking solutions grows rapidly.

"We already maintain a market-leading position with established and new products being delivered to the oil and gas sector, however we have created a three year business plan, aiming to triple our turnover to £15 million by 2017. To help support this demand we also look to double our head count to 60 staff."

The product demand for Arnlea is driven by growth in asset integrity, health, safety and environmental concerns; and a tightening of compliance and regulation post the Macondo oil spill. BP is currently among Arnlea's extensive blue-chip customer base, along with Total, Shell, Nexen, Chevron, ConocoPhillips, Talisman and Subsea7.

Mr Merritt added: "The global demand for our products emphasises a need for us to be based overseas, and we are aiming to open a second office in South East Asia as part of our three year business plan."

Mauro Biagioni, director of NVM Private Equity said: "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."

KPMG Corporate Finance advised the management team. Dane Houlahan, head of KPMG's Oilfield Services M&A team in Aberdeen, said: "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 of NVM, 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."

Arnlea is the leading asset management provider in the North Sea and has supported companies operating in hazardous and harsh areas for more than 20 years to maximise operational efficiency and effectiveness. The company's suite of mobile and radio frequency identification tracking technology, used by the oil & gas, petrochemical and food & drink industries, enables users to manage and monitor their assets. 

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