Subsea Technology & Rentals (STR), an Aberdeen-based global subsea sensor equipment and solutions provider, has secured STAR Capital Partnership LLP (STAR) as its new majority shareholder in a multi-million pound deal.
This investment marks a significant milestone for STR, setting the stage for ambitious growth in offshore energy, infrastructure, and marine science markets.
Steve Steele, CEO of STR, expressed enthusiasm about the deal:
“Securing STAR as our new majority investor will unlock significant growth potential as we plan to enter new markets and further boost our disruptive technology offering. This deal signals confidence in the long-term role we will play in offshore energy transformation.”
The company reported 40% growth in revenues to £34m in the year to the end of 2023 and turned a 2022 loss into £4.9m pre-tax profit, according to accounts filed at Companies House.
It said it made a “record” investment of £13m in its rental equipment fleet last year.
Uniti Bhalla, managing partner of STAR, commented on the investment, commented:
“We were attracted to STR due to its innovation and solutions-based approach, providing highly technical and mission critical sensor equipment into offshore markets, which are set to continue expanding through investment into energy transformation, including subsea power and communications.”
The company has nearly doubled its headcount in the last three years to 110 people globally and expects to add a further 20 people in the coming year.
This deal represents a secondary buyout, with US investor Baird Capital, who took control of the business in 2022, now exiting.
Steve Steele and Stuart Bannerman will continue to lead STR as CEO and CFO respectively, with Uniti Bhalla and Philipp Moy from STAR joining the board.
As STR gears up for its next phase of growth, the company plans to focus on sustained research and development, aiming to displace legacy subsea technologies with innovative challenger products.
With STAR’s backing, STR is well-positioned to capitalise on the expanding opportunities in offshore markets and play a crucial role in the ongoing energy transformation.
