Aberdeen-based Dominion Gas has snapped up rival company Global Gas Supplies in a £22m deal, just 3 months after undergoing a management buyout and recently announcing expansion plans.
Dominion is already Scotland’s biggest independent supplier of industrial gas products to the offshore industry and the acquisition is likely to accelerate the firm’s overseas expansion plans, gaining a presence on the ground in West Africa, Azerbaijan and Singapore following the deal.
George Yule, chief executive of Dominion Gas, commented, “We have some real international ambitions, having opened up two factories in Norway in the last 12 months. The company is going through a fairly rapid expansion programme and the opportunity to acquire another business perhaps came 12 months sooner than ideally we would have liked, but we see it as a real kicker for our international growth programme.”
“We have been trading in some of these areas but only from our hub in Aberdeen,” Yule added.
Dominion currently employs 52 staff, though the merger of the two firms will increases the global workforce to 70 and the group has said it would be recruiting for 12 additional posts across various locations within the next 6 months.
Yule noted that a new multi-million pound Aberdeen headquarters was in the pipeline, providing laboratory facilities, a training academy and a ‘state-of-the-art gas filling plant’.
GGS is understood to have received offers from a number of multinationals, while funding for the deal was provided by the Royal Bank of Scotland and Graphite Capital.
The takeover will also see Scotland’s rapidly consolidating oil and gas services industry create another millionaire as Keith Piries, holding a 91% stake in GGS, receives a significant windfall. Some of the net proceeds from this windfall are likely to be invested in acquiring shares in the new entity.