SHS extends breadth of industrial services with £2m acquisitionAugust 2013 | Portfolio News
- Acquisition follows £5.4m investment of growth capital by BGF in September 2012 -
BGF portfolio company SHS Integrated Services, a specialist provider of high specification industrial scaffolding and associated services, has acquired Dixon Pentland Scaffolding Company Limited, a leading provider of scaffolding services to the energy and heavy industrial sectors. The opportunity was introduced to SHS by Grant Thornton Corporate Finance in Cardiff, who also advised on the transaction. The value of the transaction was approximately £2m.
The acquisition will provide Barry-based SHS with a national platform for expansion into a highly specialised and regulated market.
Based in Doncaster, Dixon Pentland specialises in work in the critical services sector, for example providing scaffolding services to the power line and transmission industry. The company’s specialist work for customers such as National Grid is complementary to SHS’s own activities on petrochemical and utilities sites.
With an annual turnover of £5m, key customers of Dixon Pentland include AMEC, Babcock and Balfour Beatty and the company employs 65 people.
Founded in 1998 by Paul Smith, SHS erects and dismantles large scale, technically demanding scaffolding structures for clients in the petrochemical, oil and power generation sectors. It also provides complementary insulation services. SHS’s services are often required by site owners, operators and contractors for essential maintenance and refurbishment work of industrial plants. Offering the highest safety and operational standards, SHS has secured long term contracts with multinationals such as Dow Corning, Murco and Alstom.
SHS financed the acquisition following investment totalling £5.4 million made in September 2012 by BGF.
Dixon Pentland represents the first acquisition that SHS has made using BGF capital.
Finance director, Gavin Payne, who led the deal on behalf of SHS, commented:
“This is an important step for SHS. Dixon Pentland’s reputation and customer base is a great fit with SHS, opening up new markets and enabling us to provide an even more complete service to our customers. We shall be continuing to work with Grant Thornton and BGF to identify potential further acquisitions to complement and extend our offering in what is a highly-specialised market.”
Paul Oldham, BGF’s regional director for South Wales and the South West of England, commented:
“SHS was the first company in Wales that BGF has backed and our investment was made in order to strengthen the company’s core capabilities, develop a broader range of services and expand into new sectors and geographies. Dixon Pentland is a highly complementary acquisition given its reputation in the industry as a well-established, high quality operator and will add considerably to the range of services that SHS is able to offer its clients.”