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Inflexion Private Equity backs £22m MBO of Viking Moorings

Inflexion Private Equity, the mid-market private equity investor, announces today that it has led the £22m MBO of Viking Moorings (formerly Balmoral Marine), the market leader in the design, hire and sale of mooring systems and associated products to the North Sea offshore oil and gas industry.

The high price of oil has stimulated a surge in offshore activity in the North Sea from which Viking Moorings is ideally positioned to benefit. Operating in the Norwegian and UK offshore moorings market is technically demanding and requires a suite of regulatory approvals, creating high barriers to entry. Viking Moorings is growing strongly as a result of offering more technically advanced solutions to clients in the North Sea and to international markets.

Funds managed by Inflexion have invested £9.0 million taking a majority equity share holding. The management team have also invested, and a package of £16.0m of debt facilities was provided by the Royal Bank of Scotland.

Tim Smallbone, Investment Director of Inflexion Private Equity who led the deal, said: “Viking Moorings is the market leader in a strong industry. With its track record of developing new products and technologies, and focusing on satisfying customers, we are confident the company will continue to grow. Inflexion targets leading companies in growing markets, and Viking Moorings is a perfect fit.”

Steve Curl, Executive Chairman of Viking Moorings, said: “We are delighted to welcome Inflexion on board; their hands-on approach and financial resources will be pivotal in helping Viking Moorings reach its full potential.” Petter Nilsen, CEO of Viking Moorings, adds “With the additional investment now available to us and our ability to make business decisions quickly, we can be even more responsive to our customers’ changing requirements. The new Viking Moorings team based in Aberdeen and Stavanger is excited by the opportunities ahead.”

Jim Milne, chairman and managing director of Balmoral Group said: “The board of directors at Balmoral Group is delighted that a deal has been reached with Viking Moorings. We are confident the company will continue to develop under the new management team.

“The funds released by the MBO will allow Balmoral Group to invest £10m+ in R&D, design and manufacturing plant in its Tanks and Advanced Composites business units. I also plan to invest a further £10m+ in the first stages of development which will transform Balmoral Park into a prestigious business location on the southern fringes of Aberdeen.”

Tim Smallbone and Catherine Richards from Inflexion’s Manchester office led the deal and will join the Board of Viking Moorings.