IGF helps Pryme Group expand capabilities through merger
Independent Growth Finance (IGF) has supported Pryme Group to secure a transformational merger. Pryme Group, has merged with Caley Ocean Systems (Caley) and IMES International (IMES) (both previously part of Seanamic Group). Together, these entities will create a business with broad capabilities supplying products, services and solutions to the energy, defence and other industrial markets.
IGF played a key role in the financing of the deal, providing a flexible and tailored funding package which enabled Simmons Private Equity (SPE) to structure the merger accordingly. IGF’s full asset based lending (ABL) solution with term lending alongside totalling c£8.8m will provide the Group with the liquidity it requires to achieve its growth aspirations in the coming years. IGF looks forward to continuing to support the newly formed group at this exciting time on their journey.
Each entity within the newly merged Pryme Group brings with it a wealth of expertise across multiple sectors, Caley Ocean Systems has 50 years’ experience of designing, manufacturing and testing offshore handling systems used in launch and recovery, pipe deployment, davits and deep-water lowering. IMES International delivers an independent inspection, monitoring and testing service for fixed and loose lifting equipment, and engineering design consultancy.
Merging Caley and IMES with Pryme Group offers the enlarged group significant growth opportunities and allows the group to expand Its product and service offering, making It well positioned to expand into new areas such as the energy transition. Renewable energy capacity in the UK is expected to more than double by 2030, and the group now has the capabilities and experience to support this important move to clean energy sources with the enviable position of having c60% of its revenues and backlog in key Energy Transition markets.
Kerrie Murray, Pryme Group CEO who has been in the role since 2020 following a 2-year period as chief financial officer, and will lead the new integrated business, outlined the rationale for the merger and IGF’s role in facilitating the group’s expansion:
“Through this merger, the combined business will have a greater regional footprint with broader resources and capabilities, enabling Pryme Group to support larger and more complex projects than ever before. This creates a strong, resilient business, well positioned to support customers across a range of sectors from energy to defence to industrials. IGF has been working with us since 2017 and has played a critical role over that time, providing the right funding solutions at key times, which has helped us reach this exciting stage in the group’s evolution.”
Jason Smith, a director at Simmons Private Equity and member of the Pryme Group board, commented: “Simmons Private Equity is the majority shareholder for both Pryme Group and Seanamic Group and we’re focused on driving the growth of our companies through diversification. Through this merger, we’re creating a market-leading engineering design, manufacturing and testing company with the critical mass to support multiple industrial sectors, which includes oil and gas, offshore wind, defence and nuclear, as well as the critical work needed to accelerate the energy transition. Throughout the merger process, we’ve received outstanding support from IGF and we look forward to the continuation of our close working relationship as Pryme executes this next phase of its growth strategy.”
Adam Bradbury, ABL sales director, IGF added, “This merger marks the latest stage in a remarkable journey that Pryme Group has been on over the past four years. In that time, they’ve overcome the challenges of a period of downturn and grown the business to a point where they are able to play a pivotal role in an exciting merger with two other very strong businesses. This is a real success story for both Pryme Group and IGF. Alternative finance is on the rise because it offers the flexibility to make decisions that more traditional lenders can be hesitant towards. IGF is proud to support British SMEs, ensuring they remain independent and focused on what they do best. It’s been incredibly satisfying to work with the Pryme Group and IGF looks forward to continuing our relationship.”