Oilfield engineering firm Sparrows Offshore has received an investment thought to be worth £100m from US private equity firm AEA Investors. 

The Aberdeen crane hire business put itself up for sale at the beginning of the year after its lenders squeezed it for early debt repayments.

Founded in 1973, Sparrows has been passed around by private equity owners, the last deal involving Close Brothers, who led a £142m buyout from London Merchant Securities.

That deal was hampered after the company’s banks called their debt back early, pushing repayment of debt from 2018 to 2013 as lenders got nervous during the downturn. 

Despite its debt burden, Sparrows managed to grow sales from £149.5m to £172m in 2011 and narrowed pre-tax losses from £66.6m to £20.1m.

AEA's investment follows a refinancing in August that postponed Sparrow's June repayment deadline on around £200m of net debt. 

The crane business said that the capital injection would be used to “fast track” its global expansion through acquisitions and organic growth.