Private equity firm invests in gas turbine specialist company based in Kildare

OFS has specialist teams work in more than 40 countries for customers including Mitsubishi Power, Solar Turbines, Siemens, GE Power and Vantage

OFS’s engineers and technicians install, commission, maintain and operate industrial and aeroderivative gas turbines and related generation assets and equipment.

Private equity firm Exponent has announced an investment in Kildare-based gas turbine specialist company OFS as it seeks to meet growing demand, particularly from data centre developments.

The terms and total value of the investment was not disclosed but it is understood to be above €70m.

OFS is headquartered in Naas in Kildare but has offices in Houston in Texas. It was founded in 2002 and today the company employs around 200 permanent staff supported by a global network of contractors and partners.

It is understood that OFS plans to potentially double the number of staff over the coming years as it expands operations.

OFS specialises in gas turbines, rotating equipment and data centre energy infrastructure. Its specialist teams work in more than 40 countries for customers including Mitsubishi Power, Solar Turbines, Siemens, GE Power and Vantage.

The transaction remains subject to standard regulatory approvals and is expected to complete during the final quarter of this year. Co-founders of OFS Eric Kavanagh and Joseph Dunne will continue to lead the company after the deal goes through.

OFS’s engineers and technicians install, commission, maintain and operate industrial and aeroderivative gas turbines and related generation assets and equipment.

The company is also benefitting from the continued build-out of data centres as gas turbines are becoming an increasing power solution for these facilities.

In a joint statement, Eric Kavanagh and Joseph Dunne said as demand for reliable power infrastructure continues to grow, “we believe the business is entering an exciting new phase of development”.

“In Exponent, we are delighted to have found a partner who shares our long-term perspective, understands the importance of our culture and recognised the opportunities ahead,” the statement said.

“Their experience supporting founder-led businesses and their track record in helping scale companies internationally, particularly in the data centre market, make them the right partner for OFS as we continue to invest in our people, capabilities and customer relationships.” 

Exponent said gas turbines are “increasingly becoming the preferred ‘behind the meter’ power solution for data centres, with adoption driven by grid constraints, connection delays and the need for reliable power supply as demand for capacity continues to rise”.

Exponent will partner with OFS to accelerate growth through strengthening the business's commercial capabilities, investing in its people and service offering, and capturing growing demand from power generation, energy and data centre customers.

Exponent is a European private equity firm that primarily invests in family- and founder-led companies and corporate carve-outs. It has offices in London as well as Dublin.

Since its inception in 2004, the company said it has raised five funds and invested in over 40 businesses across Ireland, the UK and the Benelux countries.

Partner at Exponent Shane Farragher said: “Structural growth across the global power market, combined with the emergence of on-site power as a core requirement for data centres, is creating a step-change in demand for OFS's services.

“We look forward to working alongside Eric, Joe and the team as they invest in their people and capabilities to meet this growing demand.”