UK mid-market buyout house Dunedin has backed the management buyout of Premier Hytemp, a manufacturer of engineered alloy components for the offshore and onshore oil and gas industry. The business was acquired from Murray International Holdings, in a 34.5 million pounds ($55.3 million) transaction.
Dunedin, the UK mid market buyout house, has backed the management buyout of Premier Hytemp (the “Group”), a global leader in the manufacture and supply chain management of quality engineered alloy components for the offshore and onshore oil and gas industry. The Group was acquired from Murray International Holdings Ltd, in a £34.5 million transaction.
The deal comes just days after Dunedin announced its exit from market leading conference and training venues business etc.venues, which saw Dunedin realise a money multiple of more than 3x on its investment.
Premier Hytemp is headquartered in Edinburgh with manufacturing facilities in Edinburgh, Sheffield and Singapore. Premier Hytemp also has operations in Calgary, Canada and will shortly open a base in Dubai.
Premier Hytemp was formed in 2008 when Premier Alloys Limited (established in 1985) acquired Hillfoot Steel Limited (which owned Hytemp Limited, itself established in 1976).
The Group turns over in excess of £42 million and supplies complex, high integrity machined parts on short lead times to the offshore and onshore oil and gas sector globally. The company has over 200 employees worldwide and has a very strong heritage of engineering excellence, working with nickel and low alloy steel used in critical components required for drilling and production purposes. It also operates Singapore’s largest steel heat treatment facility, which is currently being expanded.
Dougal Bennett, the partner who led the deal for Dunedin and who joins the board of Premier Hytemp, comments: “Premier Hytemp fits with Dunedin’s strategy of investing in UK headquartered companies that are market leaders in their niche and which have strong international growth prospects. Commercially, Premier Hytemp is one of a few companies within its sector that has the requisite engineering skills, customer approvals, certifications and geographical reach to meet the increasingly demanding needs of this global industry.
“The market for Premier Hytemp’s products is growing strongly, driven by unceasing global demand for oil and gas and significant investment in new oil wells. Premier Hytemp is well placed to expand its capabilities, geographic footprint and product offering to further enhance its position as a global leader. Dunedin is pleased to be able to partner once again with an impressive UK business which has fantastic opportunities for growth overseas and domestically.”
Donald Wilson, the CEO of Premier Hytemp comments: “We have seen how Dunedin works with its portfolio companies to grow their operations internationally and we believe that this offers a very exciting opportunity for us. We have developed a good relationship with the entire Dunedin team and with their help, in addition to our continuing focus on first class customer service, we want to further develop the Middle Eastern, North American and South American markets. We also have a great team at Premier Hytemp and have exciting plans to continue investing in our engineering capabilities and product ranging. This will enable us to improve support of our key customers as they continue to grow on a global scale.”
The management team of Premier Hytemp leading the buyout also includes Will Gold, chief financial officer, and Doug Harrison, chief operations officer.
Mike McGill, group finance director of Murray International Holdings commented: “The transaction reflects Murray International Holdings’ continued focus on business turnaround, asset realisation and debt reduction from across its wide portfolio.
“During the early part of the recession, the management team at Premier Hytemp worked hard to enhance customer service and operational efficiency whilst also capitalising on profitable growth opportunities in the Far East. The resulting improvement in financial performance, coupled with scope for further international expansion and development, has underpinned the management led buyout. We wish the team continued success in the future.”
Also involved in leading the transaction for Dunedin were Simon Rowan (investment director), Jon Ma (investment director), Oliver Bevan (investment director) and Jamie Moodie (senior associate).
Premier Hytemp holds a number of important accreditations including ISO 9001:2008 (Quality Management System); ISO 18001:2007 (Occupational Health and Safety Management System) and ISO 14001:2004 (Environmental Management System).
Three of Dunedin’s last four exits, WFEL, Capula and Fernau were all niche industrial companies and Dunedin has significant expertise of growing such businesses both in the UK and overseas. All were subsequently sold to international trade acquirers.
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Dunedin is a UK mid-market private equity investor targeting buyouts of market leading companies in the UK with a deal size of £20m to £75m. Dunedin typically invests £20m or more in its portfolio companies.
Dunedin focuses on a number of sectors, using its depth of knowledge to understand the market drivers and to build relationships with management teams, key industry participants and influencers. The firm has enjoyed particular success in the industrial, business services and financial services sectors, completing thirteen portfolio acquisitions since 2011 in order to drive the growth and internationalisation of its investee businesses.
Located in Edinburgh and London, Dunedin has a new investment team comprising 16 investment professionals with approximately 200 years of private equity experience between them.
Dunedin LLP is a limited liability partnership authorised and regulated by the Financial Services Authority