The deal is the £2.5bn state-backed fund’s fourth since the turn of the year, and follows hot on the heels of it taking a £4.8m minority stake in gadget maker Wow! Stuff earlier this week.
BGF’s funding will go towards expanding STATS’ range of pipeline isolation devices, which can save tens of millions of pounds by repairing a line without a shutdown or evacuation, and growing the company internationally.
Aberdeen, Scotland-based STATS already has agencies in Canada, the Middle East and Far East and expects last year’s £14m revenues to grow to about £25m this year, primarily through growth in the Middle East.
BGF regional director for Scotland Simon Munro said, “Our investment in STATS is a milestone for BGF, as our first deal in Scotland, our first in a business which manufactures its own products, and our first in the vibrant oil and gas sector.
“Considerations around asset integrity and safety are at the absolute top of oil company Board agendas and are likely to remain so.
“STATS’ highly engineered approach to pipeline isolation and in-depth understanding of the technical issues involved results in safe operations and significant savings for its clients.”
BGF was set up specifically to help Britain’s fast-growing small and medium-sized businesses by investing between £2m and £10m in return for a minimum ten per cent equity stake and seat on the board.
The fund made its first Midlands investment last month by backing telecoms and data services provider GCI Telecom Group.
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