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Global Energy Group splits in two

Roy MacGregor’s Global Energy Group (GEG) has split in two, with about 40% of the Inverness-based business becoming subsidiaries of a new company owned by two of his sons and a Japanese investor.

The de-merged operations employ about 1,500 people and are now under the umbrella of Envoy & Partners, which is also headquartered in the Highland capital and led by managing partner Iain MacGregor, 37.

Envoy has already made its first acquisition, snapping up a majority stake in Australian company STR Integrity.

Iain MacGregor owns 40% of the new group, with younger brother John, 32, and Japanese conglomerate Mitsui each having a 25% stake.

Both brothers have retained interests in GEG, alongside older brother Donald, 41, and their father, as well as Mitsui following a consolidation of shares in that group.

As well as STR Integrity, Envoy comprises two Muir of Ord businesses – Ross-shire Engineering and Prime Pumps – and Aberdeen firms Global Resources, Rigfit7Seas and Maris Subsea.

It also includes Manchester-based Langfields, CPE Pressure Valves, of Tamworth, and Australian companies GQS Vertech Group, Cunningham Resource Solutions and Geo Oceans.

Iain MacGregor said Envoy would be more internationally focused than GEG, which was launched by Roy MacGregor – its Invergordon-born chairman and majority shareholder – in 2005.

GEG saw pre-tax profits rise by nearly 14% to £4.8 million during the year to the end of March 2018, despite a 5% drop in turnover to £289m.

Ian MacGregor said the split delivered businesses turning over £140m to £150m a year to Envoy, while creating better “focus” for both groups.

There are “huge” opportunities ahead for Envoy’s subsidiaries, which will continue to operate under their own brands, he added.

GEG has also been on the acquisition trail recently, buying Aberdeen firm Aiken Group out of administration and taking a majority stake in Apollo Offshore Engineering.

11/03/17 LADBROKES PREMIERSHIP  ROSS COUNTY V KILMARNOCK  GLOBAL ENERGY STADIUM - DINGWALL  Ross County Chairman Roy MacGregor in the stands.
GEG will continue to be run by majority shareholder Roy MacGregor

Financial details of Global Energy Group (GEG)’s demerger were undisclosed, although Envoy managing partner Iain MacGregor said the deal was of “a considerable size” due to the number if businesses changing hands.

He added: “The transaction itself was very complex and took many months to mature, involving a combination share swap as well as a debt package supported by Bank of Scotland.”

GEG, which owns the Nigg yard and predominantly services the UK North Sea energy industry, will continue to be run by majority shareholder Roy MacGregor.

The group’s 66-year-old chairman, who is also chairman of Ross County Football Club, said: “We have been consolidating our position in the UK market to meet the changing needs of offshore customers.

“The de-merger of the group allows our business to focus on building core capability, which will make our value proposition much clearer to customers.

“With greater clarity around our strategy, we expect to enhance our offering through a number of acquisition opportunities in the coming year.”

Iain MacGregor added: “As GEG has consolidated its business in the recent downturn, it has highlighted the need for independent strategies to develop some of the emerging portfolios in the group.

“We will be developing a more diversified portfolio of interests, respecting the unique growth opportunities available to these businesses.

“Independence from GEG will increase the growth opportunity within the new group.”

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