Scottish Loan Fund backs two energy service companies for international expansion with £5 million funding package
The Scottish Loan Fund (SLF), managed by Maven Capital Partners (Maven), has completed a £5 million investment in the energy service specialists Meta Downhole (Meta) and READ Cased Hole (READ), to support the international growth ambitions of both businesses.
Aberdeen-based READ and Meta (the ‘Group’) are trading companies of READ Well Services Holdings, operating as separate entities since 2011 to enable a greater focus on specific growth strategies suited to the distinctive product lines and technology being developed by the two businesses.
READ, a leading, specialist provider of integrity and production evaluation services used during well construction, production and intervention operations, also has offices in Norway, Australia and Qatar and will use the funding provided by the SLF to support its geographic sales growth into new targeted areas such as the Middle East and Asia Pacific regions, where they already have existing clients.
Sister business, Meta, is a leading provider of metal-to-metal integrity solutions for a range of well applications ranging from land wells through to ultra deepwater structures. It will utilise the SLF funding to further its international expansion into existing and new markets, where there is growing demand for its unique, patented technology that provides customers with certified gas-tight barrier solutions that span the life of a well through to decommissioning, even in deepwater environments, and a range of cladding products that extend the life of wells in production.
At its state-of-the-art testing facility in Aberdeen, Meta is able to test and qualify products to replicate extreme high pressure and high temperature well environments, with operations also supported by offices in Houston, Dubai and Kuala Lumpur.
Chris Cooper, Investment Manager at Maven, said: “We are delighted to be able to support the management teams at Meta and READ as they continue to grow their businesses internationally. Funding from SLF is ideally suited to providing both businesses with the flexibility and financial backing that is vital in the current environment, and will allow the management to make important strategic decisions. SLF continues to be a supporter of the oil and gas services sector, investing in dynamic businesses that are focussed on growth and have a robust business plan with a significant global dimension.”
Greg Herrera, Partner at Energy Ventures (owners of READ Well Services Holdings), said: “We are delighted to have the Scottish Loan Fund involved as a partner and look forward to the continued development of both READ Cased Hole and Meta.”
Scottish Enterprise works intensively with both companies, through its account management portfolio service, supporting them in areas such as leadership development, international market research and innovation.
Welcoming this significant investment in the oil and gas sector, Michelle Kinnaird, Investment Director of Scottish Enterprise’s investment arm The Scottish Investment Bank, said: “Today’s news reflects the determination of the supply chain during these challenging times. Like many oil and gas companies, Meta and READ recognise the important role international activity can play in their long term ambition and we are delighted we can help, through the Scottish Loan Fund, to support their growth in this area.“
Financial due diligence was conducted by Johnston Carmichael, Commercial due diligence by Calash, Legals by Blackwood Partners, and Insurance by Lockton.
For further information, please contact:
Maven Capital Partners
Chris Cooper 01224 517 124 chris.cooper@mavencp.com
Newgate
Roddy Watt 0207 653 9850
Ed Treadwell
About READ Cased Hole Ltd
A leading provider of integrity and production evaluation specialist services used during well construction, production and intervention operations, the company also provides a 24 hour interpretation service which analyses and evaluates the data obtained, returning the output to clients within a target of six hours; far reducing the turnaround time of larger competitors. The definitive information that it delivers helps clients gain a better understanding of the performance of their wells, such as the physical condition of the tubing and casing located within a wellbore, enabling them to make qualified decisions quickly, whilst minimising risk and maximising efficiency. For more information visit www.readcasedhole.com
About Meta Downhole
Meta Downhole is a leading provider of metal to metal well integrity solutions for land wells right through to ultra deepwater applications; ensuring gas tight barrier solutions that span the life of a well from well architecture through to decommissioning. Its patented product portfolio is used by operators to overcome the design and loading challenges of deep water well architecture and drilling mitigation and is an economic enabler for lower cost wells through their unique completion products. Meta further serves the economic landscape by extending the life of wells in production through a range of cladding products unique in the industry. More information is available at www.metadownhole.com
About the Scottish Loan Fund:
The Scottish Loan Fund was established by the Scottish Investment Bank, the investment arm of Scottish Enterprise, with £55 million public sector funding from Scottish Enterprise, the European Regional Development Fund and Highlands and Islands Enterprise. In February 2011 Maven Capital Partners were selected as the fund manager.
Additional investment from private sector investors, including Lloyds Banking Group, RBS, Clydesdale Bank, Santander, Strathclyde Pension Fund and Aberdeen City Council Pension Fund took the fund to its final size of £113 million in March 2012. The fund was designed to address the market need for additional debt finance for SMEs. It provides mezzanine loan funding to growth and export businesses with an annual turnover of more than £1 million.
About Maven Capital Partners UK LLP: www.mavencp.com
Maven Capital Partners UK LLP (Maven) is a small-to-mid cap private equity house focused on the provision of growth capital and mezzanine finance to SMEs across the UK. It is one of the most active private equity fund managers in the country, managing over £370m of assets for a variety of client funds, including Venture Capital Trusts, the Scottish Loan Fund, Capital for Enterprise Fund A, the Greater Manchester Loan Fund and a syndicate of Investor Partners including a number of family offices and high net worth individuals.
Headquartered in Glasgow, and with five other offices throughout the UK, Maven has nationwide coverage of the market for SME finance and is introduced to around 400 deals per year through 20 regionally based investment executives. With over 45 staff and partners, Maven executes a range of private company transactions, offers hands-on proactive portfolio management to investee companies and provides a fully integrated back-office support function to client and third party fund managers.
About the Scottish Investment Bank
The Scottish Investment Bank (SIB) is the investment arm of Scotland’s main economic development agency, Scottish Enterprise, operating Scotland-wide in partnership with Highlands and Islands Enterprise. It manages a suite of co- investment funds including the Scottish Co-investment Fund and the Scottish Venture Fund, which are partly funded by the European Regional Development Fund (ERDF); Renewable Energy Investment Fund and the Scottish Recycling Fund. SIB is the cornerstone investor in the privately-managed Scottish Loan Fund , managed by Maven Capital Partners and an investor in Epidarex Capital’s life sciences fund. Our investment funds support Scotland’s SME funding market to ensure businesses with growth and export potential have adequate access to growth capital. WE also provide a team of financial readiness specialists to help companies prepare for new investment and access appropriate finance.
Contact Information
Julia McLaren
Engagement Partner
Scottish Enterprise
0300 013 3223
07801 794046