Equistone seals 2.9x oil and gas exit

The firm has sold a business it bought in 2010 to UK-based Inflexion

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Equistone Partners Europe has sold PD&MS Energy, a specialist provider of engineering, procurement and construction services for the oil and gas industry, to UK-based Inflexion Private Equity.

Financial details were undisclosed, but the deal value was “more than £50 million” (€63 million, $86 million), according to a source close to the matter. Equistone and Inflexion declined to comment on deal financials. The divestment has delivered a 2.9x return for Equistone, the firm said in a statement. 

PD&MS Energy serves the drilling, production and marine sectors. Its core capability is ‘brownfield’ design engineering services, utilising project planning and designing software tools to service drilling and production operators in the oil and gas market.

The business employs more than 200 onshore staff at locations in Aberdeen, Dundee and Great Yarmouth, as well as in Brazil and Azerbaijan. Its turnover was £47 million in 2013, and it aims to double this by 2016.

Equistone bought the company in 2010 using its Fund III, a €2.45 billion 2007-vintage, according to PEI’s Research and Analytics division.

Inflexion said it would help PD&MS Energy accelerate its international expansion, by targeting bolt-on acquisitions. It will also look to develop the company’s sales and marketing capability, the firm added.

Inflexion has made the investment using capital from its latest buyout fund, a £375 million, 2010-vintage. This is the tenth investment from this vehicle. In January, the firm acquired a majority stake in Succession Holdings Limited, a UK-based wealth management business.

Inflexion has also enjoyed a number of successful exits lately, as it prepares to return to the fundraising trail. On Monday, the firm sold pharma technology business Phlexglobal to Bridgepoint Development Capital, booking a 2.8x return. Last month it listed FDM Group, a UK-headquartered IT services company on the London Stock Exchange, netting the firm a 16.2x return, while in May, it booked a 3.6x return after listing National Accident Helpline.