London-based STAR Capital Partnership LLP said the STAR IV Fund has completed its acquisition of Aberdeen-based Subsea Technology & Rentals (STR).
STAR Capital will become majority owners alongside a consortium of co-investors and management.
Baird Capital, an investor of STR since January 2022, has now exited the business following STAR Capital’s investment.
STR operates globally, with facilities in Aberdeen, Great Yarmouth, Houston, Perth and Singapore.
STR is a global subsea sensor equipment and solutions provider to the offshore energy, infrastructure and marine science markets.
The company manages a large and diversified fleet of specialised subsea equipment that it provides to leading offshore engineering and service firms.
“STR fits well within STAR’s specialist rental and ‘assets as a service’ investment theme,” said STAR Capital.
“It also exhibits a number of the strategic qualities STAR looks for in its investments: it has a leading position in a growing market driven by structural tailwinds and is a key enabler of the offshore energy transition.
“The company provides a mission critical service to its customers, often under long term agreements, and has built strategic relationships with its blue-chip clients through a relentless focus on high quality service.
“Lastly, STR is being led by an excellent team with decades of relevant industry experience and a clear strategic vision for growth.”
STR said the investment “will enable STR to further evolve its equipment and service offering through organic and acquisition-led growth.”
It will also expand the company’s geographical presence to clients across growing global offshore energy and infrastructure markets, with a new base in Norway set to open early next year.
Steve Steele will continue to lead STR as Chief Executive Officer alongside Chief Financial Officer Stuart Bannerman. Uniti Bhalla, STAR managing partner and Philipp Moy, principal of STAR, will join the STR board.
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.
“I’m also very pleased to be welcoming Uniti and Philipp to the board. These high calibre additions will bring a wealth of experience as we seek to deliver our growth ambitions.”