Aberdeen-based oilfield services company Dominion Gas has completed the acquisition of Argon Isotank in a deal valued at more than £4m.
A further sign of the company’s growing footprint, the deal strengthens Dominion’s rapidly expanding services to the offshore oil & gas industry.
It will see Dominion Gas, currently Scotland’s only independent oil field service company supplying the full range of diving, welding, industrial, laboratory, test and calibration gases, expand its products and services into the liquid, cryogenic, chemical and acid tank business both in the UK and internationally.
Commenting on the acquisition, Dominion Gas Chief Executive George Yule said, “The acquisition of Argon Isotank is another step towards achieving our goal of positioning Dominion Gas as a multi-service oilfield supplier in the global sub-sea sector.”
“The deal will result in a number of additional jobs being created here in Aberdeen, the Middle East, Caspian Sea, Africa and south-east Asia as the company continues to develop.”
All existing Argon Isotank staff will transfer to Dominion Gas, including the current owners Robert McDonald and JJ Welsh who become directors. The enlarged group will now also specialise in the supply of ISO tanks to the offshore oil and gas industry.
The acquisition has been supported by Graphite Capital, a leading mid-market private equity firm, and RBS, both of which backed the Dominion Gas management buy-out last year and the subsequent acquisition of Global Gas Supplies.
Graphite partner, Mike Innes, said: “We are pleased to be supporting Dominion in its buy and build strategy, which we agreed at the time of the management buy-out 16 months ago. The acquisition of Argon Isotank creates an even stronger platform for growth.”
RBS has provided acquisition funding of £2m in support of the deal, as well as committing a £3m capex facility to assist in the growth of the business over the next few years.
Dominion Gas has a turnover in excess of £20m, representing a four-fold increase in the past two years.