The move is seen by both companies as a strategic development built on the strengths of the constituent parts. Seaproof holds a market leading position for elastomer products in the offshore renewables sector while Balmoral enjoys a reputation for materials innovation and product development.
Seaproof’s Henrik Bang-Andreasen with Bill Main of Balmoral Group
It is believed the move will strengthen the UK’s position as a major content provider for the offshore wind sector in particular.
Established in 1989 Bergen-based Seaproof designs and manufactures advanced cable protection systems, bend stiffeners and flexible J-tubes and is forecast to generate sales of 140m NOK (approximately £13m) in the current financial year.
Balmoral Offshore Engineering, part of Aberdeen-based Balmoral Group, made the acquisition for an undisclosed sum and will retain the current management team and workforce totalling some 37 people at the Seaproof plant. The company will continue trading and manufacturing under that name as a division of Balmoral.
Bill Main, financial director at Balmoral, said: “This timely acquisition will help our drive into the developing renewables sector. The combination of Balmoral’s innovation and processing expertise with Seaproof’s considerable market presence presents a compelling offering.”
Henrik Bang-Andreasen, founder and CEO of Seaproof, said: “We look forward to harnessing Balmoral’s undoubted engineering expertise and experience. The company’s track record is second to none and that will bring immediate benefits to Seaproof’s existing client base.
“The move opens up significant potential in the UK market for Seaproof, something we are very keen to develop. Both organisations see substantial opportunities for growth in the future.”
Balmoral’s chairman and managing director, Jim Milne, added: “We have a natural entrepreneurial spirit within the company and are always seeking opportunities. I am confident this platform will open new doors for us and we are excited at the prospect of working with the Seaproof team.”
The acquisition comes at a time of growth for Balmoral with the recent opening of its £20m subsea test centre in Aberdeen, said to be the most comprehensive of its kind, a £10m investment in ACE Winches and the completion of a £10m state-of-the-art industrial tank manufacturing facility in South Yorkshire in 2017.