Tekmar Group to buy Subsea for up to £4m

Technology provider Tekmar Group has signed a sale and purchase agreement for the acquisition of Subsea for up to £4m from founder Gary Ritchie-Bland.

The deal represents the company’s first transaction since its AIM admission in June, launching its strategy to acquire offshore energy businesses which have a clear technology focus, have complementary customer bases and can leverage group support.

Tekmar said that Subsea, which currently operates in the global oil and gas market, will bring "world-class" engineering in the design, development and manufacture of back deck equipment and subsea pipeline repair clamps to its portfolio, along with a blue chip client list and a skilled engineering team.

The proposed acquisition includes the purchase of a high specification 40,000 sq ft manufacturing and office facility and its fixtures and fittings, which, combined, amount to around £3m in fixed assets. This property will become Tekmar’s headquarters and provide additional land for future expansion.

Of the total consideration, approximately £2m will be satisfied in cash and £1m through the issue of 645,161 new ordinary shares in Tekmar.

Non-executive chairman Alasdair MacDonald said: "Our vision is to continue building on Tekmar's position as the global leader in subsea cable protection systems in the offshore wind market and to become the partner of choice for the supply of subsea protection equipment to the global energy markets.

"The proposed acquisition of Subsea Innovation will bring new capabilities, new markets and strong cross-selling opportunities to the group. The independent directors are confident that Subsea Innovation's blue chip global client base will open up new sales opportunities for our offshore wind business. Equally, we expect Subsea Innovation to benefit from Tekmar's trusted name in offshore wind, opening up sales and supply chain opportunities for the previously wholly oil and gas focused business."

At 0940 BST, the shares were up 6% to 164.30p.