Private equity company Fremman Capital has confirmed that is in talks to acquire a majority stake in bunker fuel testing company VPS.
The London-based firm is in discussions to acquire the stake from Pan-European private equity firm IK Investment Partners, which acquired the stake in VPS in 2013.
Financial terms of the intended transaction were not disclosed. Debt financing will be provided by Bridgepoint Credit and OLB.
Fremman Capital said the acquisition of a stake in VPS fits within its “stated strategy of investing in ESG-promoting businesses”.
“VPS fits perfectly with Fremman’s strategy to invest in strong leaders in long-term growing industries,” said Fremman founding partner Olivier de Vregille.
“We will support the management team in its plan to develop the activity and assist clients in minimising energy consumption and greenhouse gas emissions.”
VPS chief executive Malcolm Cooper said the company had enjoyed a successful partnership with IK.
“They have supported us in developing a new sales strategy, investments in additional laboratory equipment and multiple acquisitions, enabling us to better serve our clients, which in turn creates a positive ecological impact,” he said.
Cooper said that VPS is excited for its steps ahead, with Fremman as a “great partner” for the company.
“From our first meeting with them, they got what we’re about, and we’re looking forward to working with them over the next few years to grow VPS to support more of our clients’ regulatory and ESG needs,” he said.
“VPS has an active role in ensuring that the biggest names in global shipping are safe and environmentally sustainable, with plenty more offerings to add in the coming years, ” said Fremman director Andrew Chetwood.
“Malcolm has done a fantastic job developing VPS into the business it is today, and we are excited to support his vision for the future.”
Founded in 1980 and headquartered in Rotterdam, VPS provides its services globally through five laboratories located in located in Rotterdam, Singapore, Houston, Fujairah and Manchester.
“The global marine fuel supply chain is complex, and international regulators are becoming more restrictive on emissions and fuels,” said Fremman Capital.
“Shipping companies are therefore increasingly focused on ensuring that the fuel they are using is within specifications and fit for purpose.”
VPS has made two acquisitions of its own in the last month including Singapore-based transformer oil sampling and testing company PGI Industries, and Yxney Maritime which offers data analytics services for reducing fuel consumption and emission footprints.
“The first expands VPS’s presence in the power and renewables sector, and the second significantly bolsters VPS’s data offering – helping shipping companies track their carbon footprint,” said Fremman Capital.
“This, alongside the company’s existing data services, positions VPS at the forefront of the promotion and use of greener fuels.
“Combined with their marine and onshore oil condition monitoring [OCM], the company has a broad offering for shipping companies looking to reduce their emissions and save costs.”
