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Tekmar Group goes back to roots with Subsea acquisition

Subsea Innovation is owned by Gary Ritchie-Bland, the father of Tekmar's chief executive
wind turbine
Tekmar specialises in offshore wind turbine cables

Tekmar Group PLC (LON:TGP) has gone back to its roots with its first acquisition since joining Aim in June.

The cable protection specialist has agreed to pay £4mln for Subsea Innovation, which manufacturers equipment used on underwater cable and pipeline installation vessels.

READ: Youngest boss of a UK-listed company steers Tekmar to a stellar start on AIM

Subsea Innovation is owned by Gary Ritchie-Bland, the father of Tekmar chief James Ritchie-Bland, and the two operations were one company until they split in 2011.

James Ritchie-Bland was not involved in the board’s recommendation to buy Subsea, said the statement.

The consideration will comprise £2mln in cash and £1mln in shares, with the remainder to come from an earn-out if Tekmar makes a profit of £500,000 in 2020.

Subsea has lost money in its last two financial years but is expected to turn that around in 2018.

Tekmar will move its offices into Subsea’s premises, adding the acquisition is an excellent commercial, cultural and technical fit.

“Subsea Innovation's blue-chip global client base will open up new sales opportunities for our offshore wind business,” Alasdair MacDonald, Tekmar’s non-exec chairman.

“Equally, we expect Subsea Innovation to benefit from Tekmar's trusted name in offshore wind, opening up sales and supply chain opportunities for the previously wholly oil and gas-focused business."

Shares rose 3% to 160p.

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