28th Mar 2019 12:34
LONDON (Alliance News) - Subsea cable protection firm Tekmar Group PLC said Thursday its subsidiary had acquired an 80% stake in Ryder Geotechnical Ltd with an option to buy the remainder for a nominal fee.
AgileTek Engineering Ltd - a subsidiary of Tekmar - will buy the 80% stake from Nigel Martin and founder Fraser Gibson for a nominal GBP2.00 fee with the remainder still held by Martin and Gibson.
Included in this deal, Tekmar has the option to buy the remaining 20% stake for a maximum of GBP2.0 million. The option is exercisable until March 2022 with the consideration payable dependant on performance.
For the year ended November 2017, Ryder generated profit of GBP48,385 on revenue of GBP102,315.
Tekmar generated GBP380,000 in pretax loss on revenue of GBP21.9 million for the year ended March 2018.
"Ryder Geotechnical provides an extremely important service to offshore sector," Tekmar Chief Executive Officer James Ritchie said. "The combination of our businesses will open new doors and enable us to expand our revenue streams further across a project's long lifecycle."
"Tekmar Group is focused on adding value in the protection of our clients' subsea assets and it is of strategic value for us to know as much as possible about seabed conditions on projects being executed by the group," Ritchie added. "The acquisition furthers our strategy to acquire offshore energy businesses which have a clear technology focus, have complementary customer bases and can leverage group support to accelerate growth."
Shares in Tekmar were untraded on Thursday, last quoted at 105.00 pence.
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Tekmar Group