This acquisition is a part of a management buyout spearheaded by Premier Hytemp’s CEO, Mohit Sreen, and will result in the management team gaining significant shares in the company.

Premier Hytemp, known for its advanced metals and precision engineering, operates from the UK, Singapore, and Malaysia, serving critical high-stress industry environments, including specialist nickel alloys for use in critical components across complex high temperature, high pressure, and corrosive environments.

The company’s capabilities include materials supply and stockholding, cutting, rough machining, boring, trepanning, heat treatment, coating, and finished machining.

Mr Sreen said: “Our strategic partnership with Souter Investments marks an exciting phase in Premier Hytemp’s journey and will further enhance our ability to meet our customers’ evolving needs while maintaining the exceptional quality, expertise, and flexibility they have come to rely on.

“Our commitment to being a trusted partner in the energy industry remains steadfast as we look ahead to a promising future.”

John Berthinussen, managing director at Souter Investments, commented: “When we speak to Premier Hytemp’s customers we consistently hear that they value its partnership approach, as well as the company’s quality, expertise, responsiveness, and flexibility.

“We are delighted to partner with Mohit and his team to support Premier Hytemp on the next stage of its development, including investing to grow the company’s capacity and capabilities, and to further enhance its market leading turnkey solutions.”

The transaction is subject to customary completion conditions and is expected to close before the end of 2023. Transaction terms have not been disclosed.

Dr Douglas Dawson, a seasoned industrialist with experience in leading global metals and manufacturing businesses, will join Premier Hytemp as non-executive chairman upon completion.

Dr Dawson added: “I am delighted to be joining Souter Investments and the Premier Hytemp team on this very exciting journey.

“To be participating in the energy sector at a time when it is experiencing significant investment and redefining its role in the global economy is truly invigorating.

“Premier Hytemp is ideally placed, with its world class customer relationships, to significantly increase shareholder value and through further investment continue to cement itself as a strategic partner to its blue-chip client base.”

The acquisition of Premier Hytemp is the latest in several industrial deals for Souter Investments, the private equity focussed family investment office of Sir Brian Souter.

Dentons as legal counsel advised Souter Investments, with KPMG, Calash, ERM, Marsh McLennan, Neotas, and FWB Park Brown providing due diligence and advisory services. Argyll Partners is acting as Souter Investments’ financial and strategic advisers. Addleshaw Goddard is management’s legal counsel with Parisi Tax and BDO providing management tax advice. Independent Growth Finance will continue to provide Premier Hytemp with asset backed facilities.