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Marine engineering and shipping firm James Fisher has bought private shipping business FT Everard & Sons for £23.7 million cash. Fisher will also assume the vendor’s £28 million debts.

The deal, which was financed through existing and new bank facilities, is expected to increase cash flows and facilitate expansion across the Fisher group.

The target’s chairman, Michael Everard, and brother William joined James Fisher’s board on completion.

Commenting on the deal, Michael said: "My family started FT Everard in the late 1800s and through four generations we have been the owners of the company.

"In James Fisher we see a like minded and successful company with a refreshing and modern attitude to the operation of tankships and marine services. We are confident that we have found the right strategic home for our company and our employees."

Fisher chairman Tim Harris believes the deal will boost Fisher’s expansion plans. "We intend to repeat the successful tankships formula by using the strong cash flow benefits from an enlarged and integrated tankship fleet to pursue further expansion in the company's other divisions," he said.

"The key focus for growth in the enlarged James Fisher group will remain marine support services, comprising the offshore oil, specialist technical and defence divisions."

Moore Stephens advised the vendor, with Phil Cowan (head of corporate finance) and Julian Wilkinson (head of international business group) leading the team.

Experts from the firm’s tax, corporate finance and assurance groups were engaged to complete the deal. "The transaction is an interesting one, involving one of the few quoted shipping transport groups in the UK," Cowan said. "The consolidation of the two companies’ interests should allow the enlarged group to go from strength to strength."

Thomas Cooper Stibbard provided legal advice to the vendor, having worked with FT Everard for more than 50 years. The team was led by senior partner Stephen Swabey, who points to changes across the sector as an important driver behind the deal. "Until recently, the British ship owning industry was dominated by family-owned companies and it is sad to see such a well known name transferring to the publicly owned sector," he said. "However, the family is convinced that the time is right for the change and looks forward to seeing the merged company going from strength to strength."

EC Hambro Rabben and Partners Ltd was joint financial adviser to James Fisher, with Evolution Securities providing similar expertise while acting as sponsor.

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