Offshore engineering firm Tekmar has announced a "significant" contract worth more than £5m.
The North East operator says the order, which is expected to commence this year and complete in 2024, will see its flagship Generation 10 cable protection systems produced at its Newton Aycliffe facility. Investors were told Tekmar's in-house subsea analysis capabilities will be used to support the project.
The announcement is the first since Tekmar secured investment from US-based private equity firm SCF Partners in April, following a period in which it had sought a buyer as part of a strategic review intended to turn around losses. The group said the £22m injection, which includes direct investment from SCF and its partner Steve Lockard as well a £18m in convertible loan note, will predominantly be used to support growth, which could include acquisitions, with a smaller amount of around £5m put towards working capital.
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Alasdair Macdonald, CEO of Tekmar Group, said: "This contract helps consolidate our strong position in the growing offshore wind market, and is a testament to our strong in-house engineering capabilities, which enable us to address customer's complex engineering requirements and optimise and de-risk projects. It also reflects the strength of our working relationships with project developers and key supply chain partners. We look forward to supporting our partners in successfully delivering this project."
As part of the recent investment package, two of Houston-based SCF's partners - Steve Lockard and Colin Welsh - have joined Tekmar's board. Mr Lockard is former CEO and current chairman of NASDAQ-listed wind turbine manufacturer TPI Composites where he led the company's growth from a New England-based boat builder into a global operator. He is also chairman of Keystone Tower Systems, a maker of wind turbine towers, and also serves on the board of Powerstar, a SCF portfolio company, which is a UK-based provider of energy storage and power resilience systems.
Meanwhile, Mr Welsh is a former head of International Energy Investment Banking at investment bank Simmons & Company International where he developed the firm's activities outside of North America in its Aberdeen, London and Dubai offices. Prior to that he spent time at Ernst and Whinney, Touche Ross and RMD.
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