Fircroft completes £140m MBO
THE family behind Warrington-based oil and gas recruitment company Fircroft has sold a stake in the business to private equity firm Equistone in a £140m deal.
The company has a presence in 25 countries, including offices in Europe, Africa, Australasia and North America. It was founded in 1970 by John Johnson and originally serviced oil and gas companies in the North Sea.
It is now run by his son, Jonathan, and is expected to turn over £650m in its current financial year. Accounts filed last week for the year ending August 2011 showed that pre-tax profits increased by 76% to £11.1m (2010: £6.3m) on the back of a 36% rise in turnover to £551.2m (£404.9m).
The business provides technical staff to the oil and gas, energy and automotive sectors. Clients include BP, Chevron, Shell, Exxon, British Gas and Bentley.
Equistone Private Equity is the former Barclays Private Equity business which underwent a management buy-out last year. The Fircroft deal was handled by the head of the firm’s Manchester office, Steve O’Hare, who will now join the Fircroft board as non-executive director.
Johnathan Johnson, chief executive of Fircroft since 2005, said: “Fircroft is a global player that provides bespoke services to some of the world’s leading technical industries.
“We are pleased that Equistone shares our vision for the future and we are delighted to secure the investment and look forward to working with them in the coming years.
Mr O’Hare said: “Fircroft Engineering Services has demonstrated strong historic growth, becoming a leading international player in specialist engineering recruitment, particularly in the wider energy sector.
“The management team, led by chief executive Johnathan Johnson and chief financial officer Michael Cohen, have done an excellent job in developing the business to date and positioning it for the next stage of growth. The strategy may also include future acquisitions in existing or additional sectors, geographies and services. We are looking forward to supporting the management team in executing these exciting plans.”
Fircroft was advised on the deal by investment bank Altium and Addleshaw Goddard corporate partners Roger Hart and Paul Medlicott. Deloitte provided financial due diligence. Equistone was advised by DC Advisory Partners and DLA Piper.
