Alchemy invests in M2 Subsea

Kenny Wastell
01 November 2016

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Special-situations-focused GP Alchemy Partners has invested in the launch of M2 Subsea, an Aberdeen-based provider of remotely operated vehicles (ROV) to the oil & gas sector.

The deal value remains undisclosed, though various media outlets report it to be worth in the region of £15-20m. The business will acquire 32 ROVs from distressed assets, the valuation of which is understood to form the basis of the investment figure reported.

It is understood the company's business plan involves the creation of around 150 jobs, with M2 planning to operate in the North Sea, Gulf of Mexico and west Africa.

While exit activity within the oil and gas space has been hindered by depressed oil prices over the past two years, it has also presented an opportunity for investors willing to take a calculated risk on the sector.

Indeed, Guinness Asset Management this year appointed two energy specialists to its investment team, as it prepares to launch a fund focusing on the oil & gas exploration sector. On the private equity front, Dunedin portfolio company EV Offshore this year bolted on software company Epidote while Norvestor acquired Norwegian oil well integrity company HydraWell Intervention.

Company
Headquartered in Aberdeen, M2 Subsea provides ROVs to the oil & gas sector. The business has additional operations in Newcastle and Houston.

People
Alchemy – Dominic Slade (managing partner).