Investcorp acquires Hydrasun from Equistone

Carmen Reichman
18 February 2013

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Investcorp has bought Aberdeen-based oil and gas services business Hydrasun Ltd in a secondary buyout from Equistone Partners Europe.

The buyer invested from its Investcorp Gulf Opportunity Fund. It plans to further diversify the company's product range and the services it offers before expanding into new geographies. The business also plans to make acquisitions.

Equistone reaped a 2.5x money multiple on its original £40m investment.

Previous funding
Equistone backed the secondary management buyout of Hydrasun in October 2007 in a £75.5m transaction from Royal Bank Development Capital. During the period of Equistone's investment, the business increased revenues from approximately £50m in 2008 to more than £105m for the financial year 2013.

The company's strategic initiatives under Equistone ownership included expanding its products and services, from distributing fluid transfer products to providing integrated products, services and solutions to global offshore oil and gas customers.

The business also built new headquarters in Aberdeen with integrated production, engineering and manufacturing facilities, and increased the number of employees from 400 in 2007 to 600 in 2013.

In 2008, the company bought IFP Systems Ltd, followed by ATR Hydraulics in 2009 and Remaq Ltd in 2011. Hydrasun expanded into Kazakhstan, West Africa, South America and Middle Eastern markets during Equistone's ownership.

Company
Founded in 1976 in Aberdeen, Hydrasun offers services based on the integration, manufacture and testing of hydraulic equipment and fluid connectors for the offshore oil and gas sector.

The company has operational bases in the UK, Middle East, the Netherlands, the Caspian Sea, Brazil, West Africa and the Gulf Coast of the US.

People
Rob Myers and Tim Swales led the deal for Equistone. Hazem Ben-Gacem is head of Investcorp's European corporate investment activities.

Advisers
Vendor – Simmons & Company International (Corporate finance); Deloitte Touche Tohmatsu (Financial due diligence); Travers Smith (Legal); Burness Paull & Williamsons (Legal); KPMG (Tax).