Baird Capital Partner Europe, a UK mid-market firm, has invested £12m (US$24m) in ESS Steel Holdings, a manufacturer of engineered components for the oil industry.
Alongside funds managed by Baird Partners Capital Europe, Yorkshire Bank provided facilities of £35m to support the management buyout and growth of the company. BCPE did not disclose the total consideration for the transaction.
Founded in 1992, ESS operates from two sites in Sheffield and Rotherham, providing a range of semi-manufactured steel alloy-based engineered products to the oil field services sector. Products include downhole oil tools and specialised well-head forgings for the sub-sea environment. In the current year, the group will generate sales of £34m.
BCPE said that global demand for downhole tools and wellhead equipment is estimated at US$3.2bn for 2007, citing research from Douglas-Westwood, driven by the rise in global energy consumption.
Advisers on the transaction comprised PKF, Hart Shaw, HLW, BDO, Eversheds, Douglas Westwood, Cardinal, RPS and Willis.