ABERDEEN-based First Hose, which supplies equipment to oil and gas firms, has been sold to a Swedish group in deal that will trigger windfalls worth up to £3.5m in total for its founders Fred and Donna Nicol.

The takeover of First Hose by Ratos, for up to £6.4m, shows overseas firms remain interested in increasing their exposure to the North Sea oil and gas services business in spite of the crude price slump.

Susanna Campbell, chief executive of Ratos, noted the deal will allow the group to strengthen its market position in the UK North Sea while enlarging its service offering.

Ratos supplies non-welded piping for use by oil and gas firms and in industries such as pulp and paper and metals.

Based in Bridge of Don, First Hose was established in 1989 and has built up a substantial business.

The company achieved underlying profits of around £1m on sales of £8.4m in 2014. It has 32 employees.

Mr Nicol said: “My wife Donna and I are hugely proud of the growth that we have achieved at First Hose, taking the business from start up to where it is today.”

The shareholders were advised by Graham Cunning, corporate finance partner with Campbell Dallas who said there remains an active mergers and acquisitions market in the oil and gas industry in spite of the challenges posed by the fall in the oil price since June last year.

He said: “While the downturn has been painful for many, it has also brought opportunity for growth-oriented businesses to position themselves for the upturn.”

Ratos has paid around £4.5m initially for First Hose and will make a further payment of up to £1.5m.

Companies House filings show Mr and Mrs Nicol both own 30 per cent of the shares in First Hose.