PD&MS

As a leading provider of project management, design, fabrication, installation and testing services for the energy industry, Wilton Group comprised three main business units: PD&MS, Wilton Engineering Services and Universal Coatings.

In May 2013, the Wilton Fabrication and Universal Coatings businesses were sold to the management team, while Equistone invested a further £4m to take a majority stake in PD&MS and relinquished its equity stake in the fabrication business. This took Equistone’s total investment to £20m.

VALUE CREATION

During the investment period, Equistone supported the business by:

• Restructuring the group to facilitate a separate sale of the fabrication and PD&MS divisions.
• Injecting a further £4m into the investment, which enabled the separation of the business and increased Equistone’s equity stake in PD&MS, which has since grown strongly.
• Hiring additional senior resource to focus on new sales opportunities and margin improvement including a new COO, finance director and sales co-ordinator.

Since the restructuring, PD&MS has continued to provide safe, effective and cost-efficient design and engineering services to the oil and gas, drilling, production and marine industries. It is demonstrating good organic growth and won its first overseas contract, which is for BP in Azerbaijan.

THE EXIT

Equistone sold PD&MS to Inflexion Private Equity yielding 2.9x total money on its Fund III investment.