Bamburgh Capital advises Tekmar Group on transformational US PE investment

April 20, 2023

Bamburgh Capital, the leading boutique Corporate Finance adviser, has led a landmark transaction for its client Tekmar Group, which sees the AIM-listed company securing a strategic investment of more than £20m from SCF Partners, a US-based Private Equity firm, giving it the financial firepower to become a major player in the global offshore energy sector.

Bamburgh has been supporting North East-based Tekmar since 2021 and has been working closely with and advising its Board on its Strategic Review and formal sales process since June 2022.

Now, Tekmar has sealed a transformational investment from US-based SCF Partners, involving a share subscription to strengthen its balance sheet raising £4.275m and an £18m Convertible Loan Note instrument to fund growth, which was approved by shareholders yesterday (19.4.2023). In addition, Tekmar also raised £2.1m from existing shareholders.

With Houston, Texas-based SCF Partners as a strategic partner and long-term investor, Tekmar Group now has a significant opportunity to strengthen its market leading position as a key supplier of technology and services to the offshore wind market globally, which is expected to see significant growth over the next decade as investment in renewable energy is accelerated to meet Net Zero commitments and secure energy supply.

SCF Partners focuses on building energy services, equipment and technology firms. In its 33-year history, the group has completed more than 370 growth investments into 78 platform companies – helping to build 18 public businesses.

A complex, multi-faceted transaction spanning more than six months was led by Murdo Montgomery and Richard Evans from the Bamburgh team.  

Murdo Montgomery, on behalf of Bamburgh, commented: “We have been delighted to work with Tekmar on this transformational deal. SCF, which has not previously invested in a UK listed company, is an ideal strategic partner and investor for Tekmar due to its long-term approach and proven track record in the energy industry.

Through this transaction, Tekmar remains a listed company with a significantly strengthened balance sheet and an ambitious strategy for future growth supporting a very significant opportunity for value creation for the benefit of all investors.  In this context, it is notable how this transaction bucks the trend for listed businesses being taken private and leaving the public market.”

Alasdair MacDonald, CEO of Tekmar, commented: “Bamburgh demonstrated a valuable combination of skills, approach and expertise in advising the Board to navigate a particularly complex process through to its successful conclusion.  

What was particularly apparent was their commitment to achieving the right outcome, both through the sustained effort from a team of experienced professionals and the way they used this experience to provide best-in-class advice and execution and to lead from the front in helping to deliver a successful transaction.”

Bamburgh was the financial adviser and Rule 3 adviser to Tekmar. Singer Capital Markets acted as Nominated Adviser, Joint Financial Adviser and Bookrunner and Commercial law firm Muckle LLP also advised Tekmar Group.