A specialty steel business employing more than 20 people in Edinburgh has been acquired by Souter Investments, the family investment office of Stagecoach co-founder Sir Brian Souter.
Souter Investments has taken a majority shareholding in Premier Hytemp, a provider of metal and precision engineering services to the energy sector. The business has a total of 120 staff with operations in Singapore, Malaysia and its facility in the Scottish capital's Newbridge Industrial Estate.
The Souter family investment vehicle is backing chief executive Mohit Sreen in a management buy-out of Premier Hytemp. Exact terms of the deal, including the transaction price, were not disclosed.
READ MORE: Murray's Premier Hytemp offloaded in £34.5m deal
Formerly part of the mini-conglomerate controlled by Sir David Murray, Premier Hytemp was sold by Murray International Holdings (MIH) in 2012 in a £34.5 million management buyout backed by Edinburgh-based private equity firm Dunedin. The business was formed in 2008 when Sir David's Premier Alloys, established in 1985, acquired Sheffield-based Hillfoot Steel.
Mr Sreen, whose management team will be "significant" minority shareholders in Premier Hytemp, said the partnership with Souter Investments "marks an exciting phase" in the company's journey.
"Our commitment to being a trusted partner in the energy industry remains steadfast as we look ahead to a promising future," he added.
Souter Investments managing director John Berthinussen said: “When we speak to Premier Hytemp’s customers we consistently hear that they value its partnership approach, as well as the company’s quality, expertise, responsiveness, and flexibility.
"We are delighted to partner with Mohit and his team to support Premier Hytemp on the next stage of its development, including investing to grow the company’s capacity and capabilities, and to further enhance its market leading turnkey solutions.”
READ MORE: Premier turnover cut by falling oil price
Douglas Dawson, a seasoned industrialist with experience in leading global metals and manufacturing businesses, will join Premier Hytemp as non-executive chairman upon completion of the deal which is expected to close before the end of this year.
The acquisition is the latest in several industrial deals for Souter Investments which include the spin-out acquisition of diagnostics services business Tracerco; backing for MML Infrastructure in its investment in Premier Modular; and working with Buckthorn Partners to support Cardo Group, a family of companies delivering building maintenance services, in its acquisition of LCB Group.
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