Newcastle subsea firm acquired by Royal IHC
by Jamie Hardesty
Newcastle-based offshore, marine and subsea technology firm, Fraser Hydraulic Power (FHP) has been acquired by Royal IHC, for an undisclosed sum.
FHP, a family-owned business, which has been established for over 30 years, has grown into an international operation with more than 60% of its products being exported.
IHC operates in the UK from Stocksfield Hall, Northumberland, designing, building and supplying specialist equipment for the offshore oil and gas, submarine telecoms, and renewables industries. It has a worldwide network of support from its parent company Royal IHC, with over 3,000 employees based throughout the world.
FHP will continue to operate as normal within the subsea oil and gas markets with an emphasis on developing and expanding the company’s equipment hire business.
Peter Fraser, previous owner of FHP, said: “It is a great deal for the future of the business and it will ensure great opportunities for the company’s employees as they carve a place for themselves within a larger operation. Their skills, backed by the global reach of IHC, should make FHP a powerful player in the global market.”
Bram Roelse CEO of Royal IHC: “The acquisition of FHP fits perfectly within IHC’s strategy to reduce IHC’s dependence on the volatile shipbuilding industry by developing OPEX activities.
“The new FHP facility offers an ideal opportunity for IHC to strengthen its position in the offshore market, centralise and further expand the offering of rental equipment, and provide a broader service offering to our customers.”
Durham-based law firm Swinburne Maddison acted on behalf of FHP’s owners in the deal. With a role which comprised advancing due diligence, disclosure and negotiating transaction documentation as well as commercial and real estate support, Swinburne Maddison worked with FHP’s accountants, RHK Chartered Accountants and Business Advisers.
Martyn Tennant, partner at Swinburne Maddison, said: “The deal has presented a few challenges – particularly given the jurisdictional differences between the parties and both parties have worked hard to achieve completion.
“There is a very good fit between the two companies and the acquisition will enable the region to strengthen its position within the global supply chain. Royal IHC will use FHP as a platform to develop its rental operation.
“This will mean that FHP employees can look forward to becoming part of a larger team with an international status that will provide some great opportunities for further growth.”
FHP operates from a new, custom-built 28,000 sq ft unit on Neptune Energy Park in Walker and employs around 40 members of staff.