Private equity firm Star Capital has taken a majority stake in Aberdeen-based Subsea Technology and Rentals (STR) in a multi-million pound deal.
Star Capital Partnership, which manages around €1 billion (£830m) in equity funds, has taken a majority stake in STR. The deal is a secondary buyout, after US investor Baird Capital took control of business in 2022.
Steve Steele, who led the Baird transaction, will continue to lead STR as chief executive alongside chief financial officer, Stuart Bannerman. Uniti Bhalla, managing partner and Philipp Moy, principal of STAR will join the STR board.
STR said the investment, the size of which was undisclosed, will target “organic and acquisition-led growth”. The firm also plans to continue expansion, with a new base in Norway set to open early next year.
The company reported 40% growth in revenues to £34m in the year to the end of 2023 and turned a 2022 loss into £4.9m pre-tax profit, according to accounts filed at Companies House.
It said it made a “record” investment of £13m in its rental equipment fleet last year.
Steele said: “Securing STAR as our new majority investor will unlock significant growth potential as we plan to enter new markets and further boost our disruptive technology offering.
“We have undergone a significant transformation over the last few years from an equipment rental business to be one of the most trusted international providers of subsea sensor technology and services across the offshore energy, infrastructure and marine markets, and we intend to go much further.
“This deal signals confidence in the long-term role we will play in offshore energy transformation. The investment enables us to further enhance our product and service offering, extend our geographic footprint and pursue complementary acquisitions. It creates opportunities for STR’s loyal clients, employees and suppliers around the world.”
He also welcomed the new board members, Bhalla and Moy. He said: “These high calibre additions will bring a wealth of experience as we seek to deliver our growth ambitions.”
STR operates technology and service facilities in Aberdeen, Great Yarmouth, Houston, Perth and Singapore.
Last year the firm invested £1m in a “centre of excellence” at its base in Norfolk where it has 22 dedicated design engineers developing new products for launch in 2025.
The company has plans to further increase revenue through a focus on sustained research and development, displacing legacy subsea technologies with innovative challenger products.
The company has nearly doubled headcount in the last three years, with 110 people globally and expects to add a further 20 people in the coming year, with further growth to be delivered through strategic acquisitions.
Bhalla, managing partner of STAR, said: “We were attracted to STR due to its innovation and solutions-based approach, providing highly technical and mission critical sensor equipment into offshore markets, which are set to continue expanding through investment into energy transformation, including subsea power and communications.
“The characteristics of the business match our specialist rental and ‘assets as a service’ investment theme.”
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