Dominion Gas expands with Argon Isotank acquisition
Aberdeen-based oilfield services company Dominion Gas has completed the acquisition of Argon Isotank in a deal valued at more than £4 million.
The deal 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 subsea 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 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.
Stuart Roberts, head of structured finance at RBS in Aberdeen, said: “This is another significant acquisition for Dominion Gas and one that will further enhance the firm’s product and customer base. RBS has enjoyed an excellent relationship with Dominion’s management team over the years and, latterly, with Graphite Capital. We believe they stand to benefit considerably from the synergies that can be achieved by bringing these two businesses together.”
Dominion Gas has a turnover in excess of £20 million, representing a four-fold increase in the past two years. With this latest acquisition the company employs 85 staff worldwide with offices in Baku, Singapore, West Africa, Norway and headquarters in Aberdeen Scotland.