Two Aberdeen oil and gas companies are merging in a deal led by their private equity owners.
Centurion Group and ATR Group, which both have operations around the world, are set to join forces to become “greater than the sum” of both firms, directors said.
Terms of the deal were undisclosed. However, SCF Partners, which has backed Centurion since 2013, will become the majority shareholder in the newly formed group, with ATR’s owners, NBGI Private Equity retaining a stake.
The businesses in the newly enlarged group, which will specialise in oil and gas rental equipment and services, will retain their trading names.
The group, which will have a combined turnover of over £100 million, will operate from bases in the UK, Netherlands, Caspian, Singapore, Australia and the US.
The firm will continue to be headquartered in Aberdeen with ATR’s chief executive, Keith Moorhouse, and chief financial officer, Euan Leask, becoming CEO and CFO respectively. Centurion’s acting chief executive, Peter Stuart will take on the role of chairman of the combined entity, while Alan MacLeod, Centurion’s CFO, will assume the role of director of integration.
Centurion Group comprises six business units: Conserve Oilfield Services, Jacks Winches, RentAir Offshore, Seanic Ocean Systems, Tristar Water Solutions and Mining Camps Australia.
ATR’s five business units are ATR Equipment Solutions, ATR Lifting Solutions, ATR Power Solutions, Underwater Engineering Services and Safety & Technical Hydraulics.
Mr Moorhouse said: “This is a great deal for both parties and their shareholders, all of whom remain in the business. It is also good news for the industry in general, especially at this difficult time. By combining our strengths and creating synergies, we will have a group that is significantly greater than the sum of its parts.”
“The merger puts us in a strong and stable position to deliver wider, cost-effective solutions, and on a global basis, that will appeal to our customers’ in today’s difficult market. The wider geographic footprint provided by the merger will allow us to provide our fleet management services over a number of locations, enabling us to increase operational efficiencies for our customers.”
Simmons & Company International brokered the deal. Their managing director, Nick Dalgarno, said: “The merger brings together two groups which have a natural fit in order to deliver greater value for customers and realise opportunities which would not be available to either business on a stand-alone basis.
“The enlarged group will provide the scale to withstand the challenges of the current market and be very well positioned to win the recovery when it comes.”
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