LDC backs Express Engineering

Ellie Pullen
10 October 2013

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LDC has acquired a minority stake in Express Engineering, a UK-based precision engineering and contract manufacturing company for the oil and gas industry.

The capital injection will allow Express Engineering to begin exploring foreign markets for expansion, as well as strengthen its manufacturing operations and position in Brazil, where the company currently has a subsidiary called Petrotec.

Express Engineering's existing lender, Lloyds Bank, has supplied a senior debt package to support the transaction.

Company
Founded in 1973, Express Engineering is headquartered in Gateshead in Tyne and Wear, with its Petrotec subsidiary in Sao Paulo, Brazil. The firm also recently acquired Burdon in Stokesley.

Express Engineering was originally a precision engineering and tool-making company. The company now also provides contract manufacturing services to the oil and gas industry, supplying precision-machined components, kits of parts and pressure-tested products. Its product base includes subsea tree, tooling and wellhead products, intervention valves, drilling heads and subsea flowline and riser products.

Clients include Cameron, FMC Technologies, Schlumberger, Weatherford and Aker Solutions. The company employs 375 staff and generated turnover of £30m for the year ending March 2013.

People
Chris Thompson is the founder and chairman of Express Engineering, while Nigel Davison is the managing director. John Garner, LDC director and head of the GP's operations in Yorkshire and the north-east, worked on the deal alongside investment director Dale Alderson.

Advisers
Equity – Deloitte, Dan Renton (Corporate finance); Squire Sanders, Jonathan Jones (Legal).
Company – PwC, Paul Mankin (Corporate finance); Ward Hadaway, Martin Hulls (Legal).