NORTH OF SCOTLAND FIRM ACQUIRED IN £6 MILLION DEAL

Date: 27th April 2007

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A North-east businessman is leading a consortium which has acquired industrial cleaning and waste disposal company, MS Industrial Services Ltd (MSIS), in a deal worth more than £6 million.

Chris Lloyd, who recently stepped down as managing director for Europe of Aberdeen-based international offshore logistics company ASCO Group, has acquired Aberdeen and Invergordon-based MSIS with a view to building a larger environmental services group.

The consortium, which comprises Mr Lloyd and Jim Clark of Aberdeen-based Linkfleet Ltd, is backed by Aberdeen Asset Managers Growth Capital. Barclays Bank has provided term debt and overdraft facilities.

Commenting on the acquisition, Mr Lloyd said: “We were keen to find a company that would provide us with a platform from which to build an environmental services group.

“It was extremely important to identify a firm which already provides a wide range of high quality services, delivered by highly skilled and experienced people and which has a strong growth potential in its own right. MSIS ticked all these boxes.

“With MSIS being at the core, we will continually be looking at other environmental services businesses that will enable us to add value to the group, not just in the UK but also internationally.

“In particular I am looking forward to working with the senior management team at MSIS. Dave Skinner, managing director, Jim MacAskill, operations director and Neil McArthur, commercial director, are key to this business and share my enthusiasm for its prospects. This is best demonstrated by the fact that they will continue to hold shares in MSIS.”

Jim Clark added: “MSIS is a great business, operating in a high-growth marketplace. Chris Lloyd’s industry knowledge, contacts and enthusiasm will complement an excellent team of executive directors. I am delighted to have the opportunity to re-invest in the company and to join the board of directors.”

Mr Skinner said: “This is great news for MSIS staff as well as for existing and potential customers.

“By being the platform business for a growing environmental services group, we will be able to continue to develop MSIS, building on the success we have already achieved, expanding the range of services we offer and extending our geographical reach. We look forward to the opportunity and to playing a key role in the business for many years to come.”

Commenting on the deal, investment director of Aberdeen Asset Managers, Jock Gardiner, said: “Environmental services is a growing and exciting market and this is an ideal time to drive MSIS forward and exploit new opportunities both at home and internationally. MSIS was a very attractive proposition with real growth potential. We have every confidence in the strong and experienced management team.”

Tom Faichnie, head of leveraged finance for Barclays in Aberdeen added: “The development of an environmental service group under the leadership of Chris Lloyd is an exciting prospect and one which Barclays is keen to support. The acquisition of MSIS, a company with excellent growth in recent years and with a very strong management team which has developed global opportunities in the oil and gas market, represents an ideal first acquisition. This company will undoubtedly be strengthened under the umbrella of the consortium.

“Barclays is developing a track record of funding oil and gas deals which create shareholder value, with Duffy & McGovern and CSL being prime recent examples. We are looking forward to working with Chris and MSIS in continuing this success.”

MSIS recently announced financial results which saw turnover rise by 72% to £4.39 million in the 12 month period from February 2006 to February 2007.

The company, which employs 35 full-time staff, works in a variety of sectors, undertaking waste management, high pressure jetting, CCTV surveys, LSA decontamination, vacuum tanker hire, tank cleaning, oil spill response services, environmental management services and vacuum transfer systems (VTS).

MSIS provides these services to offshore oil and gas customers and to a range of onshore customers involved in distilling, construction and utilities markets.

Advisors to the vendor were Paull & Williamsons. Advisors to the purchaser were Simmons & Company and McGrigors LLP.