Aberdeen/UK-headquartered Proserv has successfully completed a sponsor-backed management buyout (MBO), and is introducing an employee ownership scheme, marking a significant milestone in the company's 60-year history.
Led by CEO Davis Larssen and CFO Mark Fraser, the multi-million-pound deal is backed by GIIL, a UK-based investment vehicle of Glenn Inniss, the founder and owner of the GII Finance Group. For the past two years, GIIL (through its subsidiary GII Finance Group), has supported the financing of the business alongside investment funds and accounts managed by its existing shareholders Oaktree Capital Management, L.P. (Oaktree) and KKR.
As a result of the transaction, both Oaktree and KKR have exited their equity holdings in Proserv, with Piper Sandler serving as exclusive corporate finance advisor to the sellers.
During this period, Proserv has reported a 34% increase in annual turnover. The global controls technology specialist employs around 800 people across 13 strategically located facilities in the UK, Europe, America, the Middle East and Asia Pacific. With an established customer base that serves major E&P organizations and independent operators with its subsea and topsides controls solutions as well as other infrastructure maintenance support services globally, Proserv is also establishing a leading role in the renewables transition with its propriety ECG holistic subsea cable monitoring system.
This transition enables Proserv to accelerate its five-year growth trajectory and extend its market presence in renewables while continuing to deliver exceptional value to its customers across its core business of oil and gas.
Proserv CEO Davis Larssen, who has been with the business for almost 15 years, said: “Mark and I are thrilled to embark on this new chapter with GIIL’s strategic alignment as we progress on our journey to becoming the energy sector’s leading independent controls technology partner of choice.
“We currently have approximately 50% market share in providing leading-edge subsea control systems in the North Sea and the Gulf of Mexico. Our ability to deliver solutions for both new developments and upgrading obsolete control systems to extend the life of older fields is of increasing importance as the world focuses on energy security, energy independence, lower carbon emissions, and a measured transition to a balanced energy portfolio. Our immediate goal now is to build on our strong reputation and strengthen our presence in offshore wind where there is a growing appetite for OEM-agnostic warrantied controls technologies for safe and reliable wind farm operations.
Proserv CFO Mark Fraser added: “Our people are the backbone of our business, and their dedication and hard work have been instrumental in driving our achievements. In recognition of this, we are committed to implementing our new employee ownership program by the end of the year. This initiative, which we believe sets us apart in our sector, will empower our people to share in the rewards of our collective success and further enhance our positive team culture and long-term growth.”
