A North East industrial services firm is boosting its footprint after snapping up a scaffolding services business in Hull.
Wescott Industrial Services Ltd, based in Jarrow, South Tyneside, is also set to increase its in-house capabilities after acquiring scaffolding services provider SGS Ltd for an undisclosed sum.
Wescott has delivered surface preparation and industrial blasting and painting services to customers in the renewables, marine, oil & gas and infrastructure sectors since 2010. The work often requires large scaffold structures sourced from sub-contractors.
Acquiring Hull-based SGS Ltd means the company can offer new and existing clients fully integrated scaffolding services, giving it more control over project delivery.
In addition, the acquisition offers cross-selling opportunities between the two firms’ diverse client bases.
Wescott Industrial Services Ltd, which has around 80 staff, is owned by three shareholders, Mark Duffy, Matthew Doyle and Kevin Carruthers, who joined the business in 2016. Two years later the business established an Australian division through a joint venture with Victoria based Clean & Gone PTY Ltd.
The acquisition of SGS Ltd has been led by Wescott Industrial Services Ltd’s managing director Mr Duffy and commercial director Mr Doyle.
Established in 1994, SGS Ltd is a main supplier of scaffold access and support systems for the large industrial, petrochemical, waste to energy and pharmaceutical and food industries, as well as providing services to domestic and commercial projects.
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Its 70-strong workforce operates nationwide for clients such as Engie, BAM Construction, Amco Griffen and Gassco Gas Terminal.
Advising the directors of Wescott Industrial Services Ltd on the acquisition of SGS Ltd was Newcastle-based RG Corporate Finance, while legal advice was provided by St James’ Square Law Firm.
Corporate finance advice for SGS Ltd was provided by Benchmark International with legal advice from Primas Law.
Mr Doyle said: “The acquisition of SGS Ltd is an essential component of our strategic growth as we increase our capabilities and market presence in new and existing sectors. Bringing such a well-established and experienced scaffolding contractor into our business will offer considerable benefits to both businesses and support the continued scale up of our operations.”
Alex Simpson, corporate finance senior manager at RGCF, said: “The directors of Wescott Industrial Services Ltd have delivered positive growth for the business since joining in 2016 and this acquisition is a natural next step as it looks to increase market share and diversification into new industries.
"Both companies have respected client lists of blue-chip organisations that will see the benefit from the combined capabilities of the two businesses.”