Ellesmere Port-headquartered nZero Group has acquired Orbital Gas Systems in a multi-million-pound deal.
nZero Group has purchased Orbital Gas Systems from its US-based parent company, Orbital Energy Group (OEG), for an undisclosed multi-million-pound sum. The deal was formally announced to the New York Stock Exchange today [Wednesday, May 11, 2022].
The company aims to become the UK’s leading measurement and control partner across the natural gas, petrochemical, biomethane and decarbonisation sectors. It said that the acquisition would ensure the necessary skills and capacity are ready and aligned to help the country’s ambition to achieve net zero greenhouse gas emissions by 2050.
Located in Stone, Staffordshire, Orbital Gas Systems specialises in the design, installation, commissioning and maintenance of industrial gas sampling, measurement, and delivery systems. It has nearly 40 years’ expertise in the manufacture of a broad range of innovative technologies for the energy, power, and processing markets.
Following the purchase from Orbital’s US-based parent company, Orbital Energy Group (OEG), the business complements nZero Group’s facility in Ellesmere Port, where its subsidiary, Thyson Technology, operates.
It will see the enlarged group employ over 150 people with combined turnover in the region of £16million. Over the next three to five years, the company expects to create more than 50 highly-skilled jobs, whilst continuing to invest in people to create its own talent for the future through apprenticeship and graduate programmes, minimising the impact of UK-wide skills shortages.
Both companies, which retain their existing names, will be led by managing director, Matt Allen, along with the support of a highly experienced leadership team.
Matt Allen, managing director of nZero Group, commented: “We would like to welcome everyone associated with Orbital Gas Systems on board for what promises to be an exciting journey together and would like to thank OEG for this opportunity and the local Orbital Gas Systems management for their support.
“This deal represents a significant step forward in our strategy to become a key contributor in the UK net zero energy transition by bringing under common ownership two of the UK’s leading measurement and control partners across the natural gas, low carbon hydrogen, petrochemical, and waste to energy sectors.
“The UK and many other countries are making significant commitments to tackle the climate crisis. This is creating a growing demand for companies, like Orbital and Thyson, to provide a blend of existing technologies and innovative solutions to decarbonise, while supporting customers’ commercial and technological challenges to meet the targets they have set themselves or have been set by government.”
Neil Stuchbury, director of sales and marketing at nZero Group, added: “There is critical energy infrastructure which must be maintained and enhanced over the next decade to ensure security of supply, through gas network asset investment and upstream/midstream processing facilities, whilst driving innovation for UK decarbonisation.
“We believe the most successful businesses within these sectors will have a balance of industrial expertise and offer world-class manufacturing facilities supported by exceptional talent with the right mindset to deliver quality and innovation.
“nZero Group has these qualities and will take the lead to succeed, attract new people, and seek strategic partnerships to deliver decarbonisation solutions. With our already world-leading hydrogen blending expertise, we are now positioned to build on the capabilities that the UK and the world will require to ensure safe and rapid progress is made to achieve net zero.”
The acquisition was backed by NVM Private Equity, the majority shareholder of nZero Group. Pannone Corporate acted on the transaction as the company’s legal advisers, led by corporate partner, Tim Hamilton, Andy Walsh, Rosie Korcz, and Amy Chandler.
Andy Leach, partner at NVM Private Equity, commented: “The combination of Thyson and Orbital creates a business with extensive resource, expertise and technologies that is well positioned in its niche markets.
“With the infrastructure investment that will be made in the UK over the coming years to decarbonise and deliver energy security, these markets are set for a sustained period of growth. The next few years will, undoubtedly, be an exciting period for nZero Group and its employees.”
Image: Matt Allen