FIBRON
Fibron, based in Hoddesdon, on the outskirts of London, is a UK leader in the design and manufacture of umbilical systems for the control, repair and maintenance of wellheads in the oil and gas industry.These systems, which consist of hoses, connectors and reels, deliver power, data and fluids from the rig or vessel to the sea floor. They can be up to 5km in length and weigh up to 50 tonnes. Each system is unique and Fibron’s differentiator is their engineering skill in designing and manufacturing systems to meet the specific operating environment of a particular application. The cost of system failure is very high, so customers place a premium on suppliers like Fibron that have a wide number of prior reference sites and an excellent reputation on quality.
Entry Date
December 2018
Deal Status
- Realised
- August 2023
Sector
Subsea
Geography
- UK Headquartered
- International Business
complexities
- Carve-out
- Fixable underperformance
rubicon origination
Fibron was a non-core (and the only UK) business owned by Actuant, a $1.5bn market capitalisation US Company, for over 10 years. Actuant mandated an adviser to sell Fibron in the middle of a cyclical downturn in the Energy industry and struggled to find a buyer.Rubicon were introduced to the situation through our advisory network and our due diligence revealed that the business was starved of attention and investment by its parent, as well as underperforming its potential.
Rubicon angle
A reasonably complex carve-out from a large US parent of an unloved business which needed significant investment.
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Fibron lacked an actionable strategic plan and there were insufficient resources and focus on business development, geographic expansion and diversification outside of Oil and Gas. Yet, customer satisfaction with the technical capability of the Company and the quality of the product was extremely high, while the major competitor was shifting its focus to power cables for the offshore wind industry, creating an opportunity for Fibron to gain market share.
Growth opportunity -
Fibron
VALUE CREATION STRATEGy
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Following the carve-out, after a period of stabilising the business, Rubicon restructured the Senior Leadership Team, recruiting a new, customer-facing, CEO, from the industry and strengthening the Operations and Sales functions.
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In addition, the Rubicon suite of cash flow monitoring and financial controls were implemented, leading to improvement in cash generation, which was reinvested in Capex and growth initiatives.
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A comprehensive strategic plan was developed and executed, which lead to greater resources and focus on new customer acquisition in adjacent segments such as Remotely Operated Vehicles, Deep Sea Exploration and Offshore Wind. Geographic expansion was also pursued in the Middle East and Asia.
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