Tekmar Group has formally completed the acquisition of Subsea Innovation, which will lead to an accelerated focus on new product development as the company looks to expand its position as a global market leader.
Marking its first acquisition since its successful admission to the Alternative Investment Market (AIM) in June 2018, the purchase of Subsea Innovation significantly increases the technical of capabilities within Tekmar Group.
The acquisition is part of a rapid strategic growth strategy, which involves organic development and a programme of further acquisitions targeting offshore energy businesses that have a clear technology focus.
Based in Darlington, County Durham, Subsea Innovation undertake the design, development and manufacture of back deck equipment such as Launch and Recovery Systems for Remotely Operated Vehicles (ROVs) and emergency subsea pipeline repair clamps (EPRC).
Building on Tekmar’s reputation for ‘protecting anything under the sea’, the addition of Subsea Innovation’s pipeline protection technology adds suite of products to protect fixed pipelines. These technology-led solutions complement Tekmar’s existing portfolio of subsea cable protection systems, which are prevalent in a number of sectors, most notably offshore wind.
Subsea Innovation has a strong presence in the pipeline market, but as yet little presence in renewables. Tekmar see huge potential to leverage its customers catapulting Subsea Innovation into becoming a major player in the offshore wind market.
James Ritchie, CEO of Tekmar Group, said: “When we floated on AIM we promised investors a dynamic business with a clear plan for the future. The Subsea Innovation acquisition is just one part of our growth plan. We are a very entrepreneurial business, and, in addition to our Mergers & Acquisitions activity, we have strong ambitions for continued organic growth.
“The addition of Subsea Innovation will enable the group to make further inroads into the global energy markets, which hold exciting prospects for the business. We also know that many investors chose Tekmar as a credible investment in the green energy market due to our offshore wind presence. Although Subsea Innovation was predominantly oil and gas, we see huge potential to also make the business a major player in the renewables market, retaining and cementing our focus as a credible long-term renewables investment.”
Dave Thompson, managing director at Subsea Innovation Ltd, added: “Subsea Innovation successfully design and build some of the largest structural pipeline repair clamps in the world. The clamps provide contingency repair cover for pipelines up to 44”, to reinstate the mechanical integrity of any damaged or weakened section. This is extremely important to maintain HSE standards and keeping production shutdown time to a minimum. With Tekmar we will be proud to support our customers to remain the best in the world as we develop a range of new products in this area.”
The global offshore wind market is expected to grow at a 16% compound annual rate from 2017 to 2030, reaching a cumulative capacity of 115 GW compared with 17.6 GW today.
North East commercial law firm, Square One Law advised Tekmar on the acquisition of Subsea Innovation.
Marie-Louise Bozonet, head of energy and corporate partner at Square One Law, commented: “The North East has a strong pedigree in the subsea industry and a legacy that is being built upon by dynamic and entrepreneurial companies like Tekmar.
“The company’s strategy and ambition is delivering a pipeline of opportunities that will enable it to carve out a growing position in global energy markets and continue to fly the flag for this region’s technology-led supply chain around the world.”