Gresham backs buyout of Walker

The value of the transaction has not been disclosed although Gresham made the acquisition via the newco ICR Integrity Ltd, which will be the group brand for further acquisitions in the integrity, corrosion and repairs sectors. The mid-market investor originated the deal directly. Gresham had been looking to acquire a business specialised in the inspection, repair and maintenance of assets of the oil and gas industry for some time. It sees a compelling investment opportunity in this niche, with many oil platforms established in the 1970s suffering from corrosion and in need of constant servicing.

Under the ICR Integrity platform, Gresham will look to expand Walker's portfolio of services to overseas markets through organic growth as well as add-on acquisitions. The company looks to open an overseas hub in the Middle East and is already in final talks to make its first add-on, while two further targets have been lined up.

Debt
HSBC provided a senior debt package as well as further acquisition facilities to support the transaction.

Previous funding
Maven Capital Partners backed the BIMBO of Walker in August 2009. The deal was valued in excess of £7m with Maven investing £2.85m for a majority stake in the business, while management contributed for a minority holding. The previous owners also re-invested and Clydesdale Bank provided senior debt facilities to support the transaction. Willie Rennie joined the company as chief executive, while Bob Forbes joined as non-executive chairman.
Under Maven's ownership, Walker internationalised its trading and penetrated new markets such as Oman, Angola and Norway. The company's earnings doubled during the holding period resulting in a lucrative exit for Maven with an exit multiple of 2.9x and 70% IRR.

Company
Aberdeen-based Walker specialises in the composite repairs of piping systems and pipelines for the oil and gas industry. Walker has developed a range of advanced composite products called Technowrap. The company currently provides services to the international oil & gas market including North Sea, Norway, Africa, Canada, Middle East and South America. Overseas business accounts for 45% of sales and clients include BP, Statoil, Shell, Exxon Mobil, Chevron, Conoco Phillips, Taqa and Nigerian Petroleum Company. WTR was founded in the early 1990's and employs 45 full time staff.

People
Iain Wolstenholme and Andy Marsh led the buyout for Gresham and will join the Walker management board. Joe Windle represented HSBC. Jock Gardiner and Ewan MacKinnon led the exit for Maven. Willie Rennie is the chief executive of Walker Technical Resources.

Advisers
Equity - Simmons & Co, Nick Dalgarno (Corporate finance); DLA Piper, James Kerrigan (Legal); Dow Schofield Watts, Ed Brentall (Financial due diligence); Calash, Alan Evett (Commercial due diligence); PricewaterhouseCoopers, Nick Hatton (Tax); FWB, Scott Black (Management due diligence); AON, John Donald (Insurance due diligence); Armstrong Craven, Helen Ryan (Management due diligence)
Management - Ritson Smith, Graham Alexander (Corporate Finance);
Vendor - Blackwood Partners, Alastair Wyper (Legal)

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• Topics
• Buyouts
• UK / Ireland
• Industrials
• Secondary buyout
• Gresham Private Equity
• HSBC