Gresham-backed ICR Integrity makes first acquisition

Susannah Birkwood
12 October 2011

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ICR Integrity, a Gresham Private Equity-backed specialist in engineered composite repairs, has acquired North East Corrosion Engineers (NECE).

The bolt-on represents ICR's first acquisition since the company was formed by Gresham in July, following the buyout of Walker Technical Resources for less than £25m. The buy-and-build transaction involved the investor's provision of acquisition facilities and a senior debt package arranged by director of leveraged finance Joe Windle at HSBC.

Gresham sees "huge" potential in the integrity, corrosion and repair sectors at present, while ICR said that NECE is at "an exciting stage of development" as it has recently added new services such as sand management and corrosion engineering to its portfolio.

The acquisition – which was facilitated by a pre-existing relationship between the acquirer and investee company – will help accelerate ICR's international expansion plans and bolster its team. ICR is currently speaking to at least two other businesses, with a view to acquiring additional firms in the asset integrity space.

Last week, another Gresham portfolio company, James Grant Group, announced that it had purchased Rabbit Voice Management.

Company
Aberdeen-based ICR Integrity specialises in the composite repairs of piping systems and pipelines for the oil and gas industry. It was founded in 1990 and employs 45 people.

NECE is also based in Aberdeenshire and has been offering corrosion monitoring, oilfield microbiology, chemical monitoring and consultancy services to the oil and gas industry for the past 25 years. Part of the ABZ Group since 2005, it has 25 employees and generates revenues of £2.5m

People
Partner Iain Wolstenholme led the deal for Gresham. Willie Rennie is the CEO of ICR, while NECE continues to be managed by its current operations director Andy James. Bob Forbes, board director of NECE, remains on the ICR board with specific responsibility for future acquisitions, while Andy Bruce, board director of NECE, joins as COO.

Advisers
Equity – Blackwood, Alastair Wyper, Ross Fair (Legal); Campbell Dallas, Tom Faichnie (Financial due diligence).