Wilton Engineering Services Ltd acquires PD&MS Ltd

Middlesbrough-based Wilton Engineering Services Limited has acquired Project Design & Management Services Ltd of Aberdeen.

The deal will see the expanded company employ more than 250 people and increase its annual turnover to over £30 million.

Wilton Engineering, situated on the River Tees at its Port Clarence Offshore Base in Middlesbrough, provides bespoke high-quality fabrications to the offshore and petrochemical industries. PD&MS, meanwhile, provides expert technical support, engineering and project management services to the oil and gas industries.

The deal was brokered by accountants Clive Owen & Co LLP and funded by the Royal Bank of Scotland, whilst leading northern law firm Dickinson Dees provided legal advice.

The new enlarged group comprising of Wilton Engineering Services Ltd, Wilton Marine Services Ltd, Universal Coatings & Services Ltd & PD&MS Ltd will continue to operate and service the needs of their existing customers from their present locations, and will naturally look towards synergies across the businesses enabling them to maximise revenue returns and compete aggressively in the markets they operate within.

As part of the transaction the Directors of PD&MS will join the enlarged board at Wilton as active shareholders, as well as maintaining their position on the board of PD&MS Ltd thus ensuring seamless continuity.

The deal enables the new business to position itself as a "turnkey" provider within the offshore oil and gas, petrochemical, marine and energy markets in the UK.

Commenting on the acquisition and the company's plans for the future, David Soley , Chairman of Wilton Engineering said: "We are delighted to have concluded this deal for PD&MS, which transforms the company and our position within the UK marketplace. With the complementary skills of PD&MS added to our already strong reputation within the industry, we automatically grow our customer base, but importantly face the market now as a truly "turnkey" provider.

"This will allow us to move into new markets, seek new clients both at a domestic and international level. We applaud the support from RBS to allow us to move quickly and conclude the transaction."

RBS has provided a facility to support the acquisition and the ongoing operations of the enlarged business. Mark Burton, Director, Corporate Banking at RBS in the North East added:

"Wilton Engineering are already a successful business in the UK offshore oil and gas sector. The acquisition of PD&MS and its complimentary skill base now provides the company with additional revenue streams which opens up a number of business opportunities for the enlarged group to exploit."

Joanne Lavery, associate solicitor at Dickinson Dees' Tees Valley office, commented: "We are delighted at the outcome and all parties worked really well together to ensure that this complex deal has come to such a successful conclusion for everyone concerned within a tight timeframe."

Angus Allan, Corporate Finance Partner at Clive Owen & Co LLP added, "This deal has brought together two highly successful businesses that each have a strong and capable management team. Given the current buoyancy of the oil and gas sector, I fully expect the new group to expand rapidly which will lead to the creation of further jobs both in Aberdeen and the Tees Valley."

Left to right: Mark Burton of RBS, Bill Scott of Wilton Engineering Services, and Angus Allan, Corporate Finance partner at Clive Owen & Co LLP

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