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Secondary buyout of Walker Technical heralds formation of new global niche integrity solutions group

The formation of a new international niche integrity group of companies in the energy sector has been announced following the secondary buy-out of engineered composite technology specialist, Walker Technical from Maven Capital Partners by the existing management team backed by Gresham Private Equity with support from HSBC.

ICR Integrity Ltd, a newly formed vehicle and group brand under which other businesses in the integrity, corrosion and repair sectors can be acquired, will be headed by current Walker Technical CEO, Willie Rennie, who led an MBI of the company in 2009 backed by Maven Capital. Gresham’s backing will facilitate growth on a global scale both organically and through a ‘buy and build’ strategy.

Willie Rennie, CEO, Walker Technical said: “The team at Walker Technical has delivered industry leading safety, quality and service levels. We have brought new solutions to customers and opened up new markets. The substantial growth of the business is testament to the great team here and our focus on the most advanced composite technologies in the market through our Technowrap product range. I’m extremely proud of what we’ve achieved, allowing us to take this next strategic step and look forward to growing the Walker Technical business and capability further.

“The creation of ICR Integrity heralds an exciting time as we embark on our vision to create a group of companies on a global scale via both acquisition and organic growth and we are already progressing opportunities with Gresham to achieve this. In the meantime, it is business as usual for Walker Technical, the first ICR Integrity company.”

Iain Wolstenholme, partner at Gresham who led the deal comments: “Gresham has been looking to invest in the integrity, repair and maintenance niche of the energy sector for some time and we are delighted to be backing this talented management team. This investment also reinforces Gresham’s reputation for buy and build.”

Gresham Partners Iain Wolstenholme and Andy Marsh will join the ICR board. Bob Forbes remains as a non-executive director. Gresham has significant experience in the oil and gas sector having previously backed the MBO of Swift Technical, a global recruitment and relocation business focused on the oil and gas sector.

Jock Gardiner, Maven partner in Aberdeen, commented: “This is a very profitable exit for Maven investors and allows the Walker management team to continue growing the business. We have enjoyed working alongside Willie Rennie and his team since our original investment in 2009, and have been able to support the business in fulfilling its growth plan and strategic vision. The capital we provided enabled Walker to consistently increase earnings and strengthen the management team, whilst consolidating its market leading position and penetrating new international markets.”

Nick Dalgarno, managing director of Simmons & Company, who were lead advisors on the deal, said, "The transaction is a great example of the private equity cycle working properly to add value to businesses. By funding the initial buyout, Maven provided the catalyst for growth which Willie and his team have worked hard to deliver however as the business expands through the next phase of its development, the associated funding requirements mean that deeper pockets are required. Gresham can deliver the necessary funding and expertise to enable the management team to deliver the company's strategy through a combination of organic growth and acquisition which is a model they have made successful on many previous occasions."

Joe Windle, director HSBC leveraged finance commented: "We are delighted to assist with this buy out of a prominent Aberdeen headquartered business. The existing management team have a proven track record and are excellently placed to deliver the next phase of growth for Walker. HSBC is happy to help support this growth alongside Gresham as the business continues to grow further in both the North Sea and key international oil and gas markets".

Walker Technical has seen a 60% growth in sales in the last 12 months with turnover increasing to £6.5 million at the end of the financial year in May 2011 compared to £4 million the previous year.

The company increased its Aberdeen headquartered staff by 30% over the last two years and will be recruiting more personnel over the next few months to take the headcount to over 55. Work has already started on a new and upgraded £400,000 office, workshop, training and R&D facilities at the company’s Aberdeen headquarters which are due for completion in September.