Aberdeen Asset Managers Growth Capital and Clydesdale Bank Invest in UK’s Leading Independent Oil & Gas Telecommunications Company

Aberdeen Asset Managers Growth Capital (AAMGC), supported by the Clydesdale Bank, has invested in Aberdeen-headquartered NESSCO, one of the UK’s leading telecommunications businesses serving the global oil and gas industry.

The overall deal will see Clydesdale Bank provide debt facilities in excess of £10 million and AAMGC invest  £4 million equity in the business through a syndicate led by Aberdeen Asset Managers Growth Capital fund, including funding from AAMGC’s co-investment partner - the Scottish Venture Fund.

Established in 1979 by Tom Smith, NESSCO provides a range of telecommunications services to a wide range of blue-chip energy clients around the world from its purpose-built headquarters in Aberdeen and offices in Glasgow, Edinburgh, Reading, Baku and Rio de Janeiro. The £20 million turnover business now boasts a workforce of 140.

Mr Smith and his colleagues Austin Davidson and  Bill Fraser all remain significant shareholders in Nessco Group Holdings Limited and are committed to an ambitious growth strategy which includes further internationalisation, continued support to the North Sea industry and other UK development projects.

Local businessman, Bob Forbes whose businesses have been backed by AAMGC, has been brought in as non-executive director to provide strategic input as the business drives forward its ambitious growth plans.

Mr Smith said: “This cash injection by AAMGC, backed by Clydesdale Bank, will enable us to speed up our planned investment in people and technology so that we can capitalise on the international opportunities available to us in the energy and other sectors.”

“We identified AAMGC and Clydesdale as the best partners to finance our continued growth and are delighted to welcome Bob to the management team. They have a real understanding of our business and share our ambitions.”

Commenting on the deal, Jock Gardiner Investment Director AAMGC said: “This is a very attractive investment for us. The strong management team, led by highly respected Tom Smith whom I have known for many years, has already built up a profitable business and our equity funding will enable them to fast-track the next stage of growth.”

Ian McNeil, director specialist and acquisition finance with the Clydesdale added: “We are delighted to support AAM in this investment in a highly successful locally based company. NESSCO is a market leading business operating in one of the fastest growing sectors of the energy industry.  The management have delivered exceptional growth over the last x years and this transaction represents an excellent opportunity for us to deliver a debt funding package that will provide them with a platform to accelerate their growth.”

Advisers in the deal were as follows :
For NESSCO : Johnston Carmichael and Paull & Williamsons
For AAM : Ritson Smith, Biggart Baillie, Anderson Anderson & Brown, Calash and Kudos
For Clydesdale : Shepherd and Wedderburn

Issued on behalf of Aberdeen Asset Management and Clydesdale Bank by The BIG Partnership. For more information contact Zoe Corsi on 01224 578172 or 07973983243