THE Investcorp Gulf Opportunity Fund along with other affiliates of Bahrain-based Investcorp has agreed to acquire a controlling stake in Hydrasun, a Scottish international provider of fluid control equipment and solutions for the global offshore oil and gas sector.

The company did not disclose the size of the stake or the value of the deal, but said it bought the holding from Equistone Partners Europe Limited.

“It’s in the middle market range,” Investcorp president for Gulf business, Mohammed Al Shroogi, said.

“The size of the transaction is between the $150 million and $300 million range.”

Founded in 1976 in Aberdeen, Scotland, Hydrasun has international operational bases in the UK, Middle East, Netherlands, Caspian Sea, Brazil, West Africa and the Gulf Coast of the US.

It is specifically engaged in the integration, manufacture and testing of hydraulic equipment and fluid connectors for the offshore oil and gas sector. Its products and services are mainly used across that sector with further application in the petrochemical sector.

The company employs approximately 600 personnel and has state-of-the-art engineering, production, manufacturing, training and warehousing facilities.

“We are excited about acquiring a leading company in a resilient and rapidly growing segment of the oil and gas sector,” said Al Shroogi.

“We believe that Hydrasun is well positioned to continue its growth as it is a leader in its target market with strong client relationships, a unique service offering, experienced managers and a successful business model of local presence and export-led internationalisation. We look forward to supporting Hydrasun’s experienced management team as it continues to execute its strategy of expanding into new geographies.

“This acquisition is the result of a continuous effort to bridge international companies with expansion plans in the Gulf’s growing oil and gas sector. Hydrasun represents an opportunity for us to fulfil our mandate from our investment partners in the Investcorp Gulf Opportunity Fund,” said Al Shroogi.

Hydrasun’s key competitive advantage is its ability to manufacture in-house and customise product solutions for its clients, supply a broad and differentiated product portfolio and deliver a flexible, timely and high-quality service.

It has a significant number of blue chip customers and has worked for leading regional and global oil and gas operators, drilling contractors and service companies including British Petroleum, General Electric, Petrobras and Transocean.

“We are delighted to partner with Investcorp given their previous success in investing in the international oil and gas sector coupled with their global network and deep-rooted heritage in the Gulf,” said Hydrasun chief executive Bob Drummond.

“We believe this transaction will enable us to continue to grow organically and pursue strategic acquisitions to further accelerate our international footprint.”