Underwater services groups merge

Pressure Products Group and the Circle Group two of the UK's top commercial diving supply and engineering companies have confirmed that they are merging.

The companies, both of which are based in Aberdeen, are bringing their operations together in a strategic move aimed at developing their package of products and services and building a strong and competitive platform for future business expansion.

The merger will bring together the subsidiaries of each group under the umbrella of the new merged Pressure Products Group. These subsidiaries, well known in their own market sectors, include existing Pressure Products Group companies, Divex and Mara Engineering, along with Circle Technical Services and UWI Circle from the Circle Group.

"The commercial diving business has changed considerably over recent years," explains Derek Clarke, Managing Director of Pressure Products Group, "and the merger of Pressure Products Group and the Circle Group is part of our response to this changing market. It brings together some of the best-known names in the underwater business Divex, Mara Engineering, UWI Circle, Dive Dynamics and Circle Technical Services.

"For our customers there will be benefits in the expanded group in terms of a one-stop approach to a wide range of underwater supplies and services. It is also our intention to utilise the benefits of scale to ensure that we provide an effective and highly competitive service."

David Dent Managing Director of the Circle Group takes on the role of Marketing Director at Pressure Products Group.

"The products and services of the Pressure Products Group and the Circle Group are, to a large extent, complementary," he adds, "so bringing the two groups together will enable us to provide a comprehensive service for our clients, both civil and military, while giving us the resources to develop our role as a leading supplier of commercial diving products and services in the UK and, indeed, internationally."

Joining David Dent on the Pressure Products Group board as Commercial Director is the Circle Group's Douglas Godsman.

Further details of the merger and the development of the new combined group's key divisions Divex, Circle Technical Services, UWI Circle and Mara Engineering will be announced later.

As part of the merger, UWI Circle operations and staff will be relocating, later this year, from their premises on the Kirkhill Industrial Estate to Pressure Products Group's £1.5-million, purpose-built headquarters complex on the Westhill Industrial Estate.

The merger has been financially supported by 3i and the Bank of Scotland.

"It brings rationalisation to the diving supplies market which has contracted in recent years as diver man-days have fallen dramatically." says Keith Mair, Aberdeen Director of 3i. "It should make the domestic business stronger and therefore better able to export and support operating companies in other parts of the world".

The merged Pressure Products Group has a projected annual turnover of £14 million.

The financial details of the merger deal are not being disclosed.

For further information contact D Clarke 01224 740145 or D Dent 01224 771381.