Multi-million pound package for Cosalt

COSALT is aiming to become the main player in the North Sea marine safety market after agreeing a £34m refinancing deal to fund acquisitions and help grow the business.

The group, whose chairman is entrepreneur and Carphone Warehouse co-founder David Ross, services and provides critical marine safety equipment in the life raft, lifeboat, life jacket, fire safety and lifting and inspection sectors.

The refinancing package has been agreed with The Royal Bank of Scotland and HSBC.

Mark Lejman, chief executive of Grimsby-based Cosalt, said the package would support the group’s day-to-day liquidity requirements and help to fund future acquisitions.

The cash has also been used to fund the acquisition of Myhre-Maritime, a Norwegian offshore marine safety business, which Cosalt revealed it was to buy for up to £12m to strengthen its North Sea market, in July.

Cosalt also announced a £3m share placing to fund the acquisition in July, underwritten by Mr David Ross and Bermuda-based Sovereign Holding, which represents the wealthy Rappaport family which owns a significant shareholding in Cosalt.

Cosalt focuses on personal safety, lifting and inspection and protection services for onshore, offshore oil and gas structures, cargo and passenger ships.

Based in Stavanger, Norway, Myhre-Maritime manufactures and supplies lifting slings, lifting, towing and mooring equipment.

It also performs annual equipment inspections, equipment service and re-certification.

Mr Lejman said: “The acquisition of Myhre-Maritime is part of our strategy to provide a leading pan-North Sea network of marine safety centres focused on the offshore oil and gas market.

“Together with the refinancing we are now in a strong position to benefit from the acquisition through the generation of additional revenue streams in our marine and offshore safety markets.

“We are grateful to HSBC and RBS for the funding line and support in this acquisition. Both banks have a large global presence and fit well with Cosalt’s international growth aspirations.”

Mark Lewis, relationship director, corporate banking at RBS, said: “The business has an established reputation in the marine safety market, and we have been very impressed with management’s ambition to become a leading global player.

Glenn Bemment, corporate banking manager at HSBC based in Manchester, said: “In the acquisition of Myhre-Maritime, we believe the group has a great opportunity to strengthen its presence in the global marine safety industry.”