Gresham backs management buy-out of Swift Technical Group

Gresham, the UK mid market private equity specialist, today announces that it has backed the management buy-out of Swift Technical Group (”Swift”), the market leader in global recruitment and relocation focused on the oil and gas sector.

Swift provides labour to both onshore and offshore projects with a focus on the upstream (exploration and development) environment. Clients include global oil majors BP, Chevron, Exxon and Shell who are forecast to continue their multi-billion pound investment programmes. Swift works closely with their blue chip customers to ensure that contractors with the right skills are placed into oil projects. It provides a “one stop shop service” ranging from personnel selection to complete mobilisation to countries as diverse as Azerbaijan, Russia and South America.

The business has many offices worldwide in London (head), Houston, Moscow, Sakhalin Island (Russia), Baku (Azerbaijan), Lagos (Nigeria) and Rio De Janeiro (Brazil). In the current year it expects growth to be around 30% generating revenues of £128m and an operating profit of over £11m.

The global demand for oil and gas has increased in the past few years driven by the additional energy requirements of developing countries such as China and India together with instability of supply in places such as Iraq. This has helped to push oil prices to over $70 a barrel this year, c.5x the level seen in the 90’s. The oil majors have reacted by investing further in exploration as they seek to replace their reserves. Exxon alone plans to spend over $14 billion in 2006 in the upstream sector. Swift is ideally placed to help cater for the staffing requirements needed for this exploration.

Richard Mulcahy, Managing Director of Swift, joined the business in 1993 and has led the MBO together with Paul Marsh and Stephen Bailey. Their strategy is to continue to provide the very best service to existing clients and contractors in current areas of operation, whilst looking to expand Swift’s presence into other regions.

Richard Mulcahy commented: “This is a very positive move for all of our customers and employees with Gresham adding further strength and structure allowing us to continue our growth in the ever expanding energy staffing sector."

Gresham Director Paul Canning who will hold a seat on the Board of Swift said: “Swift has a superb reputation in its industry for responding quickly to the needs of its clients and for really looking after its contractors “in country”. We are delighted to be backing Richard and his team”

Stewart Cantley, who has a successful background in support services, will join the Board as Chairman.

Gresham invested just over £21m into the management buy-out. Adam Wardle of GE Commercial Finance provided an invoice discounting and senior debt package to support the business going forward.