Bank of Scotland backs engineering MBO

The corporate banking division has enabled UWG Group, an international engineering collective to buyout two of its shareholders.

The Aberdeen office of Bank of Scotland Corporate Banking has financed the management buyout of UWG Group, a collection of engineering businesses specialising in water well systems for an undisclosed amount.

The group is buying out two of the shareholders, Richard Hall and Mark Boyd, who are leaving the company.

Formed in 1989, the group comprises four companies, UWG, Team Energy Resources, Claxton Engineering, and 2H Offshore Engineering. Between them the group operates Well Systems Engineering and Equipment, Well Intervention and Abandonment Services, and Deepwater Riser Engineering Technology, and employs around 140 staff in the UK, US and Middle and Far East.

Euan Leask, associate director of structured finance at Bank of Scotland, said this MOB was attractive because the group was established in an emerging market, which gives it room to grow.

“This was an opportunity for Bank of Scotland to support an experienced management team in an MBO in a growth sector of the oil and gas service sector, an area we are focusing on,” he said.