Independent merchant bank Quayle Munro Holdings PLC said one of its investee companies, Submersible Technology Services Limited (STS), has been acquired by Australian oil and gas service group Neptune Marine Services Ltd for £16 million with a further performance-linked paymenmt due in the future.
Perth headquartered Neptune Marine Services is one of Australia’s largest marine engineering services. The company supports a range of marine based projects primarily for the oil and gas and renewable energy industry. Its service divisions include subsea and pipeline engineering, commercial diving, specialist fabrication, inspection, repair & maintenance, ROV, and vessel supply services.Neptune will pay an initial £16 million for STS, with a further conditional consideration due in the future, which will be based on STS’s 2009 earnings. Quayle Munro held a 49.9% shareholding in STS and received cash of £6.7 million with the future payment due on a pro-rata basis. Quayle Monroe said that the proceeds will be applied principally to increasing its liquid resources.
STS is a specialist contracting company to the offshore oil and gas industry, STS owns and operates a fleet of remotely operated vehicles (ROVs). The company provides specialist subsea services to substantial oilfield engineering services businesses and oil majors.
The Aberdeen, Scotland, headquartered STS supports international clients in Europe, the Middle East and South East Asia. In its last reported financial period from 16 April 2008 to 31 December 2008, STS generated pre-tax profits of £2.6 million.