Ramco plans further expansion after major LDC investment

Ramco Oil Services Ltd, the leading provider of tubular related services to the North Sea oil and gas industry, is planning further international expansion after substantial investment from LDC.

In a secondary buyout of undisclosed value, LDC, the UK's leading regional mid-market private equity house, has supported the Ramco management team in an investment which, initially, buys the business from its current backers and will then support its growth strategy.

Formed in 1977, and HQ’d in Aberdeen’s Badentoy Park, Ramco’s core business is the provision of services relating to the storage, management, cleaning and preparation of pipe used in oil and gas wells. Ramco also owns 50% of BSR Pipeline Coating Ltd, a joint venture with Tata and the UK’s leading oil and gas focused line pipe coating business.

Since 1983, Ramco has had a strong presence in Norway, and is now the clear market leader in both the UK and Norway employing a workforce of c230 people in this specialised field. Ramco also has established international operations in China, Japan and Romania and has previously operated in North America and the Far East. Ramco was the subject of a management buy-out in 2005 backed by Sir Fraser Morrison and his family.

Following LDC’s backing, Ramco is committed to further international expansion.

The transaction was led by Mark Kerr, Head of LDC’s Aberdeen office alongside his colleague, Kevin Binnie. Mark will join the board.

CEO Stewart Cumming stresses that the LDC investment underlines not just the company’s strong market position but the quality of their service and the skills of their workforce.

“I am tremendously proud that with the financial backing and support of Sir Fraser Morrison and his family we have built up a successful business with such an enviable reputation,” said Stewart. “The opportunities are there to take our skills further afield and LDC recognise and support that ambition.”

Malcolm Edward, Commercial Director, added, “Since we first started, Ramco has brought vision and leadership to our particular speciality area. I am convinced we have substantial growth opportunities ahead of us and am excited about Ramco’s future.”

Mark Kerr, Head of LDC’s Aberdeen offce, said LDC is very optimistic about the outlook for the oil services industry in the North Sea and the opportunity this creates for companies like Ramco with strong areas of sector expertise built up over many years of operation.

“We are delighted to support Stewart and his management team and invest in the long-term growth of Ramco. We hope that this will be the first of several oil service investments that LDC will make during the course of this year and believe it demonstrates LDC’s commitment to both Aberdeen and Scotland, and appetite to invest in the oil services sector”

Sir Fraser commented, “It has been a pleasure to have worked with Stewart, Malcolm and the excellent team at Ramco over the past eight years. I am delighted LDC have chosen to invest in the business and wish they and the management team the very best in what is a very active sector.”

Clydesdale Bank’s Acquisition Finance team has supported the secondary buyout with additional term debt facilities for Ramco, an existing customer of the Bank.

Michael Scott-Brown, Acquisition Finance Director at Clydesdale Bank in Aberdeen, said: “Ramco has grown consistently and sustainably since the original MBO in 2005.

“The company’s strong reputation and market share mean it is well-placed to grow further. We are looking forward to working with the management team to help the business capitalise on international opportunities.”

Notes to Editors

  1. LDC is the private equity arm of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.  
  2. LDC backs ambitious management teams from UK-based medium sized companies seeking up to £100m of investment to fund management buyouts or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure, Support Services, Construction & Property and Financial Services.
  4. LDC has a UK regional network with locations in Aberdeen, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Newcastle, London, Manchester, Nottingham and Reading.