North East chartered accountants and business advisers RHK played a key role in ensuring that a significant offshore deal went through. Partner David Hall advised the owners of Tyneside-based FHP Ltd in connection with the disposal of its entire issued share capital to Dutch-owned Royal IHC.FHP, a family-owned business which has been established for more than 30 years, has grown into an international operation with more than 60 per cent of its products being exported. Its growing work in the subsea and oil and gas markets has seen the company continually investing in new skills, technologies and infrastructure.
IHC, which operates in the UK from Stocksfield Hall, Northumberland, designs, builds and supplies specialist equipment for the offshore oil and gas, submarine telecoms, and renewables industries. It has a worldwide network of support from its parent company Royal IHC, with more than 3,000 employees globally. To ensure that the deal went through, RHK worked closely with FHP’s lawyers Swinburne Maddison LLP on due diligence, disclosure and negotiating transaction documentation as well as commercial and real estate support.
David Hall, RHK’s senior partner, said: “We have acted for FHP for a number of years and watched the company grow and develop from a start-up company to its stature today. “IHC’s business strategy is to expand through acquisition so FHP’s geographic proximity was very attractive because employees share a similar outlook and culture. Customers and suppliers will also benefit from the extended range of support, innovation and technology offered by a larger group.”
Martyn Tennant, partner in Swinburne Maddison LLP, who recently received industry recognition as ‘Young Lawyer of the Year’ and ‘Dealmaker of the Year’, said: “The deal presented a few challenges, particularly given the jurisdictional differences between the parties and both parties have worked hard to achieve completion.
“There is a very good fit between the two companies and the acquisition will enable the region to strengthen its position within the global supply chain. Royal IHC will use FHP as a platform to develop its rental operation. This means that FHP employees can look forward to becoming part of a larger team with an international status that will provide some great opportunities for further growth.”
FHP, which operates from a new, custom-built 28,000 sq ft unit on Neptune Energy Park in Walker, Newcastle, employs about 40 staff working on all areas from design concept through to installation and commissioning.
It will continue to operate as normal within the subsea oil and gas markets with an emphasis on developing and expanding the company’s equipment hire business.
Peter Fraser, previous owner of FHP, said: “It is a great deal for the future of the business and it will ensure great opportunities for the company’s employees as they carve a place for themselves within a larger operation. Their skills, backed by the global reach of IHC, should make FHP a powerful player in the global market.”
Gateshead-based RHK provides accounting, tax and business advisory services. More information from the company can be obtained from http://www.rhk.co.uk/.
Caption: (L-R) Martyn Tennant (Partner, Swinburne Maddison LLP), Ronald Fraser (formerly FHP), Mick Jones (IHC), Peter Fraser (formerly FHP) and David Hall (RHK Business Advisers LLP)