Pipe protection firm acquired

A company that provides concrete subsea “mattresses” to protect pipelines and power cables has changed hands in a seven-figure deal.

Pipeshield, which has manufacturing operations local to its primary markets, including Aberdeen, the UAE, Saudi Arabia and Singapore, is being bought by stock market-listed peer Tekmar for £6.5 million.

Steven Howlett, the founder of Pipeshield, will remain as the company’s managing director.

Tekmar said the deal would extend the number of protection products it offers to existing customers for offshore projects, while increasing the group’s “cross-selling opportunities”.

Pipeshield currently employs 25 full-time staff, plus some 15 contractors supporting the manufacturing process at any one time.

Following the acquisition, the business will continue to trade under its own name from its leased headquarters in Lowestoft and will remain a separate legal entity within the wider group.

Howlett said: “Tekmar and Pipeshield have many similarities. We are industry-leading technology providers within subsea protection and share a similar history and culture.

“I am keen to see the business progress and believe that being part of Tekmar will accelerate the achievement of our long-held growth aspirations.

“I want to thank the Pipeshield team for all its hard work, getting us to this point, and highlight, to my staff and customers, that this change in ownership will only increase the opportunities for the business.”

Tekmar chief executive James Ritchie added: “Pipeshield is a perfect fit for Tekmar. Its products are complementary, allowing us to upsell and expand our offering to clients, realising our group vision. I am truly excited by the prospect of adding the Pipeshield offering to Tekmar’s portfolio.”