Aberdeen firm EnerMech is slashing 120 jobs in its home city after transferring to new ownership.
The Press and Journal (P&J) understands a total of 250 roles – about 5% of the global workforce – are being axed across EnerMech’s many operations around the world.
And Christian Brown, the mechanical and electrical services firm’s chief executive, is leaving after four years at the helm to “pursue other opportunities”.
All change at the top
Charles Davison Jr will be joining the company as CEO. He was executive vice-president of operational excellence and chief operations officer at Weatherford International. Before that, he was at US energy services firm Strike, where he served as president and CEO.
Mr Davidson was also previously chief operating officer for Oceaneering International.
It is understood EnerMech has launched consultations with staff over the redundancies.
‘Successful recapitalisation’
The job cuts and change of CEO come after what the firm has described as a “successful recapitalisation”.
Sources close to the situation said the “difficult, yet required” decision to make workers redundant was was not taken lightly, and the firm was “fully committed to ensuring a transparent and inclusive process”.
In December 2018 EnerMech was acquired by US-based global asset manager Carlyle Group in a deal worth about £450 million. It was previously owned by Lime Rock Partners and private shareholders including former CEO and co-founder Doug Duguid.
Carlyle has now exited the business, sources told the P&J today.
EnerMech has a new majority shareholder, London-based Polus Capital Management.
Other financial institutions taking a stake in the Aberdeen firm are thought to include JP Morgan and Intermediate Capital Group.
A spokeswoman for EnerMech said the refinancing had delivered “substantial debt reduction and provided a stable liquidity platform”.
Founded in April 2008, EnerMech provides specialist integrated mechanical, electrical, instrumentation and integrity services to the international energy and infrastructure sectors, from pre-commissioning to operations, maintenance and late-life support and decommissioning.
As of January this year, the company employed 4,116 people globally.
The workforce is spread across UK sites in Aberdeen, Great Yarmouth and Bridgwater, as well as overseas locations including Norway, Abu Dhabi, Qatar, Saudi Arabia, Iraq, Azerbaijan, Kazakhstan, Singapore, Malaysia, India, China, South Korea, Angola, Mozambique, Nigeria, South Africa, Guyana, Trinidad, Mexico, the US and Australia.
EnerMech is a recognised industry leader for its comprehensive portfolio, global footprint, extraordinary people and customer relationships.”
Charles Davison Jr, EnerMech’s new CEO
Looking forward to taking on leadership of the business as CEO, Mr Davidson said he was “humbled and honoured”.
He added: “EnerMech is a recognised industry leader for its comprehensive portfolio, global footprint, extraordinary people and customer relationships. These elements serve as a solid foundation for the company to build upon.”
We prioritize communities in which we work, partnering with local companies and recruiting locally for economic growth, sustainability and thriving communities #SupplyChain #Innovation pic.twitter.com/I9xJ6u6TSt
— EnerMech (@EnerMech) March 1, 2024
Mr Brown, who will will provide support to Mr Davison during a brief transition period, said: “It has been a pleasure and a privilege leading outstanding colleagues and servicing our valuable customer base through the past four years.
“Together, we grew EnerMech’s business, entered new markets and built a world-class team positioning the company strongly for the future and for the next phase of its journey. I wish EnerMech the very best for the future.”
The Companies House website shows EnerMech’s accounts for 2022 are “overdue”.
Earlier figures show the group made pre-tax losses of £53.6m and £28.7m in 2020 and 2021 respectively as it tried to navigate the many challenges of the Covid-19 pandemic.
The firm turned over £210.5m in 2020 and £307.6m the following year.
As of December 31 2021, EnerMech had assets worth £64.8m net of liabilities totalling £67.8m.
Conversation