Cosalt Offshore buyer emerges as offshore firm collapses
A total of 250 jobs appear to have been saved at lifting and safety equipment maker Cosalt Offshore after a private equity firm agreed to buy the business from its struggling parent company.
Grimsby-based Cosalt warned last week it faced insolvency as a result of a big debt and pension burden.
Its collapse put at risk its offshore operations in Aberdeen and Norway.
NBGI Private Equity, which already owns ATR Group in the same sector, is buying Cosalt Offshore for an undisclosed sum.
The deal has still to be completed.
The new combined company will have more than 400 employees, with a turnover of £55m.
NBGI said the deal would stabilise the Cosalt business, most of whose staff are based in Aberdeen and Montrose. A further 20 are based in Norway.
End Quote Keith Moorhouse ATR chief executive
This deal will be welcomed by Cosalt's staff, customers and suppliers as an end to a period of uncertainty”
ATR chief executive Keith Moorhouse will lead the enlarged group.
He said: "This deal will be welcomed by Cosalt's staff, customers and suppliers as an end to a period of uncertainty.
"Cosalt has an excellent technical and operational reputation and is an integral part of the supply chain of many of the energy sector's leading oil service companies and operators.
"Cosalt and ATR will be pooling their significant resources and technical expertise to deliver a broad, integrated service offering to the oil and gas industry."
He added: "The deal will bolster ATR's growth by opening up the Norwegian market and improving its operational capacity through access to Cosalt's skilled engineers, technicians and inspectors and its substantial equipment hire fleet."
ATR rents out specialised tools and equipment to the offshore oil and gas industry maintenance market.
Cosalt Offshore provides offshore and marine safety equipment, lifting and rigging gear, wire rope and related tools as well as offshore inspection and compliance services.