UK submarine specialists buoyed by lucrative deals
Two British engineering firms in the specialist world of submarines were toasting successful deals today.
Merchant bank Quayle Munro signed a deal to sell one of its portfolio companies that specialises in specialist unmanned subs for the oil and gas industry and engineering group James Fisher announced that an agreement to supply submarine rescue services to Singapore's navy had gone live.
The Quayle Munro deal consisted of Australia's Neptune Marine Services buying Submersible Technology Services — a company in which the bank owns a 49.9% stake — for £16 million.
STS owns and operates a fleet of remotely operated vehicles which it uses to work on clients' underwater equipment and machinery at oilfields across the world.
The sale will allow Neptune to invest substantially in the future growth of STS.
James Fisher, renowned for helping rescue seven trapped Russian submariners in 2005, will receive £18 million cash from its deal. Only a few months ago Fisher delivered a similar rescue system for the Korean Navy. The cash will reduce Fisher's gearing by about 19%.
