Deal price not revealed
Rotech Group has sold its subsea arm for an undisclosed sum.
Surrey based Reef Subsea has taken over the Aberdeen business in what is described as a "friendly and strategic" acquisition.
The Rotech Subsea subsidiary will work alongside Reef's Norwegian business Scanmudring to offer a wide range of dredging and excavation tools.
The funds from the deal will be used by Rotech Group to extend its research and development, engineering and fabrication capability.
Mark Preece, Reef Subsea chief executive officer, said: “I am delighted we have come to an agreement with Rotech’s shareholder to bring such a powerful combination of dredging and excavation services to our clients.
"There is no overlap between Scanmudring and Rotech Subsea profiles and we expect their integration to be quick and easy."
Ken Stewart, Rotech group managing director, said: "Rotech Holdings will continue operating as an engineering and fabrication business in Aberdeen.
"The deal with Reef Subsea allows us to return to the main roots of the company to focus on research and development projects.
"Our expertise in engineering will ensure that the Rotech Group will continue to thrive as we develop new and innovative tools for the oil and gas industry to meet our customers various requirements."