Subocean £17m LDC Investment...

LDC, the private equity arm of the Lloyds Banking Group, has invested in fast-growing Aberdeen-based business, Subocean Group.

The subsea construction company, which is now one of the largest providers of services to the marine renewables sectors in Scotland and the UK, will use the investment to double the business in two years and achieve a turnover of £300million by 2014.

The company secured LDC’s £17million equity investment as part of a £42million fundraising in one of Scotland’s biggest private equity deals this year. LDC has a significant minority stake, valuing Subocean in excess of £75million.

Subocean managing director and shareholder, John Sinclair, said: 'LDC’s investment demonstrates fantastic confidence in the business and its potential, particularly within marine renewables where we are now working on over 50% of offshore windfarm projects currently under construction in UK waters. With an order book standing at £150million, we have strong foundations for our ambitious growth which the new equity will help us pursue.

'To date, Subocean has only been addressing the UK market requirements but we see an even bigger opportunity to capture a significant share of business outwith the UK from 2011 when other European governments start progressing their own renewable targets for 2020.

'This investment will also enable us to expand our existing offshore wind operations, invest in the latest equipment and further develop our offering in both renewables and oil and gas markets.'

Subocean, which was first formed in 2005, now employs 90 people with a turnover of £70million, in excess of 75% of which is now derived from the fast-growing renewable energy sector. The company anticipates a 50% growth in employment within the next two years.