Acquisition of Subsea Technology & Rentals by STAR Capital

TRANSACTION TYPE
Acquisition, Debt financing

ARGYLL ROLE
Buy-side

DEAL TEAM
Andrew Nicolson, Barry Wingate, Ian Gilmartin, Michael McPhillips

SECTOR
Energy Equipment & Services

WEBSITE
STR-Subsea.com

Argyll Partners provided Strategic and Debt Advisory services to STAR Capital, on its acquisition of Subsea Technology & Rentals (STR), including securing multi-bank debt financing to support the transaction and future growth.

STR is a leading global subsea sensor equipment and solutions provider to the offshore energy, infrastructure and marine science markets. The company delivers mission-critical equipment rental and technology solutions to support offshore survey, positioning, environmental and subsea construction. STR is headquartered in Aberdeen with global operations in Great Yarmouth (UK), Houston (USA), Perth (Australia) and Singapore.

This represents a significant investment into the offshore energy transition value chain by a leading European Private Equity firm and is not only one of the most significant deals in the energy sector this year but one of the largest M&A transactions in Scotland to close in 2024.

Our team has been involved in the STR success story since Baird Capital’s investment in 2022, working with the current CEO, Steve Steele, in sourcing capital for a management buy-in and now advising STAR Capital in this latest round of investment that provides Baird with a full exit - realising one of their most successful equity investments in terms of IRR & MoM return in just 3 years.

This investment from STAR alongside the multi-bank debt facilities will not only provide Steve Steele and his team with the additional capital to evolve its equipment and service offering through organic and acquisition-led growth, but also provide the team with an equity partner with true cultural fit and a firm understanding of the underlying business model and its key markets.