BGF invests £5m in Spex Group

This deal marks BGF's fourth investment in Scotland this year, after financing two Glasgow-based companies and one located in Edinburgh, and the fund's second investment in as many days in the oil and gas sector.

Spex already has an expanding international footprint, having recently opened new operations in the US, Mexico and Saudi Arabia, and the capital injection from BGF is expected to accelerate this growth. Spex is also looking to speed up its technology development and invest more in its staff, particularly in the recruitment of service personnel.

BGF will take a minority stake in the business and investment director Mike Sibson, who led the deal team, will join the board of directors. The fund, which is backed by five of the UK's banking groups, invests in businesses with a turnover of £5-10m.

Company
Founded in 2009 and employing more than 60 people, Spex is headquartered in Aberdeen. It provides specialist services to the offshore industry, including explosives, cutting, punching and abandonment capabilities. Clients are able to utilise both the Innovation Centre and Spex Production solutions to design, develop, test and manufacture energetics and non-energetics technologies.

The group experienced a 259% growth rate in the three years to 2013.

People
Jamie Oag is the CEO and founder of Spex. BGF investment director Mike Sibson will take a seat on the Spex board. Senior investment manager Kathryn Ramsay, investment associate David Grammie and Scottish regional director Simon Munro also worked on the deal.

Advisers
Equity – Dundas & Wilson (Legal); Campbell Dallas (Financial due diligence).
Company – Blackwood Partners (Legal).

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• Topics
• Expansion
• Industrials
• UK / Ireland
• United Kingdom
• BGF (Business Growth Fund)