World-leading independent oil and gas consultancy, Crondall Energy has completed a partial management buy out (MBO) following a new funding facility from ThinCats and is ideally placed to embark on further expansion to capitalise on a buoyant market.
There were a number of key considerations in this transaction that ruled out traditional lenders, including the downturn of the oil and gas industry and that a substantial proportion of group income is overseas. ThinCats took the time to understand the business within the context of its market, giving consideration to the company’s recent performance and projections and the strong recovery of the sector, in order to provide the level of funding required for the management team to buy out an existing 49% shareholder, allowing them to exit.
The Winchester-headquartered company provides strategic, commercial and technical services for offshore oil and gas projects in the global market for floating production and deep water solutions.
Anna-Louise Peters, finance director, Crondall Energy Limited, said: “This is a very exciting time for our business as we are seeking to scale with the market on our side. In funding this partial MBO, ThinCats offered what every business wants and appreciates from a lender; a proactive, pragmatic and responsive approach, allowing the management team to focus on the business, whilst they concentrate on getting the transaction over the line smoothly.”
Chris Potts, corporate finance associate at PKF Francis Clark Accountants, commented: “With the partial MBO completed, Crondall Energy is perfectly positioned to expand with the uptick in the market. We assessed the needs and aspirations of both the business and key stakeholders before recommending suitable transaction structures. We then considered a wide variety of funding options, including both debt and equity providers, and concluded that ThinCats was one of the most suitable funders for the particular circumstances of this transaction.
“They took it in their stride, focusing on recent results generated as the sector began its cyclical uptick. They were able to take into account the consolidated balance sheet including overseas subsidiaries when considering security for the facility in order to provide the quantum of funding required. They also demonstrated flexibility around key terms and covenants to provide the right deal for the business.”
Andrew Tapsell, director, regional business development at ThinCats, added: “We are delighted to support Anna-Louise and the management team at Crondall Energy with the funding for their partial MBO. We met them at their offices in Winchester and were able to structure a credit backed offering in a timely fashion, enabling them to take the business forward precisely in the direction that they want to take it.”