Aurora Energy Services - run by serial Aberdeen entrepreneur Doug Duguid - has completed its fourth and largest acquisition to date.
Aurora has today announced it has acquired the Houston-based Cotech Group in a “significant deal”.
This latest deal increases the staff employed by Aurora to 275 and the company has forecast first year revenues of £35million by December.
Cotech was founded by Aberdonian Mike Wallace in 2005 and provides a comprehensive range of rope access and non-rope access inspection, repair, construction and maintenance services, with the majority of its work being in the onshore and offshore wind sector.
Mr Wallace, finance director Mark Wallace, and other senior management will remain part of the enlarged business and will spearhead Cotech’s growth State-side, while exporting its expertise into European, Asian and Australian renewable energy markets.
The deal included a significant investment by Australian serial entrepreneur Niall Conlon, who is now a major shareholder of Aurora and will sit on the executive board alongside company founders Doug Duguid and Michael Buchan.
Growth
Over the next three years Cotech’s 100-strong workforce is expected to treble to more than 300 staff, and with expansion planned across the burgeoning US onshore wind power sector and on the Eastern seaboard,
Aurora predicts the acquisition will boost annual revenues by £30million and EBITDA by £3.5million over the next three years.
Aurora Energy Services chief executive Doug Duguid, said: “This strategic acquisition is important on a number of levels, giving us immediate access to the massive US wind sector, and laying the foundation for rapid expansion in Europe, Australia and Latin America.
“Mike Wallace has established an excellent highly-respected business and Cotech’s standing in the US onshore and offshore wind sector adds a layer of expertise which Aurora can utilise outwith the company’s established markets.
“We will export Cotech’s skills and experience firstly into the UK and Europe, and send key members of our Scottish team to the US to benefit from the latest training and techniques in wind energy inspection and repair services.”
Successful team reunited
Doug Duguid and Michael Buchan were co-founders of oil and gas services company EnerMech. Over a 10-year period the two-man start up completed 17 acquisitions, employed 4,000 staff in 23 countries, and grew revenues to £415million and earnings to £50million, exiting the business in a £400million+ sale to Carlyle Group in December 2018.
Niall Conlon was instrumental in growing the Australian and US businesses of EnerMech, and Aurora said today that Mr Conlon taking an ownership stake and joining the management team was a key part of the new firm’s strategy.
Aurora’s business plan is to create a £100million turnover international energy services provider over the next five years, by mirroring and supporting the energy industry’s transition from oil and gas and by developing a strong presence in wind, solar, hydrogen, carbon capture and storage, pumped hydro and waste-to-energy sectors.