Industrial services business acquires scaffolding contractor
A Hull-based specialist scaffolding services provider has been acquired by a North East-based business.
SGS Ltd has been acquired by Wescott Industrial Services Ltd, which is looking to increase its in-house capabilities and geographical presence.
Established in 1994, SGS Ltd is a main supplier of scaffold access and support systems for the Large Industrial, Petrochemical, Waste to Energy and Pharmaceutical and Food industries, as well as providing services to domestic and commercial projects.
It has a workforce of around 70 directly employed personnel and operates nationwide for clients such as Engie, BAM Construction, Amco Griffen and Gassco Gas Terminal.
Westcott delivers a range of surface preparation and industrial blasting and painting services to sectors such as Renewables, Marine, Oil & Gas and infrastructure, which often requires the use of large scaffold structures sourced from sub-contractors.
As a result of its acquisition of SGS Ltd, Wescott Industrial Services will be able to offer its existing and new clients fully integrated scaffolding services, which it previously sub-contracted.
It will enable the company to better control this element of the supply chain, along with the overall delivery of projects.
Founded in 2010, Wescott Industrial Services Ltd is owned by three shareholders, Mark Duffy, Matthew Doyle and Kevin Carruthers, who joined the business in 2016.
Employing around 80 people, Wescott Industrial Services Ltd has established itself in the energy sector supply chain with its provision of on and offshore fabric maintenance and rope access supervision capabilities.
The latest acquisition was led by Wescott Industrial Services Ltd’s managing director Mark Duffy and commercial director Matthew Doyle.
Advising the directors of Wescott Industrial Services Ltd on the acquisition of SGS Ltd was Newcastle-based RG Corporate Finance led by partner and head of corporate finance Carl Swansbury and senior manager Alex Simpson.
Legal advice to Wescott was provided by Oliver Gray, head of corporate and commercial services at St James’ Square Law Firm.
Corporate Finance advice for SGS Ltd was provided by Benchmark International with legal advice from Gary Black, partner and head of corporate and commercial at Primas Law.
Doyle said: “The acquisition of SGS Ltd is an essential component of our strategic growth as we increase our capabilities and market presence in new and existing sectors.
“Bringing such a well-established and experienced scaffolding contractor into our business will offer considerable benefits to both businesses and support the continued scale up of our operations.”
Alex added: “The directors of Wescott Industrial Services Ltd have delivered positive growth for the business since joining in 2016 and this acquisition is a natural next step as it looks to increase market share and diversification into new industries.
“Both companies have respected client lists of blue-chip organisations that will see the benefit from the combined capabilities of the two businesses.”