NVM Private Equity has supported the £7.5m (€9.4m) management buyout of Swansea-based Silverwing Group.
NVM contributed £6m to the deal while bank debt was provided by RBS.
Silverwing develops a range of non-destructive testing (NDT) solutions, which inspect storage tanks, vessels and pipework for corrosion and wall loss, specifically for the petrochemical industry.
NDT inspections are becoming increasingly important to prevent accidents, reduce costs, improve product reliability and limit environmental damage. In 2005 at the Kallo oil storage facility in Belgium, a tank holding 37,000m³ of crude oil leaked due to undetected corrosion on the floor of the container. Petrochemical companies must now demonstrate to regulatory bodies that their facilities and systems operate safely.
“The growth in infrastructure across emerging markets in Asia, Africa and the Middle East is driving demand for these types of solutions, as well as increasing health, safety and environmental legislation in established markets,” commented Wayne Woodhead, managing director of Silverwing.
Silverwing was established by Simon Packer in 1983 as a service inspection company. It developed its own magnetic flux leakage floor scanner, used to detect underfloor corrosion in large petrochemical storage tanks, in 1992. In 2000 the company restructured under the name Silverwing and established divisions in the Middle East and Africa.