Oil services specialists Wood Group have continued their expansion into the US shale industry after snapping up American firm Elkhorn.
The Wyoming-based construction firm, which has a turnover of around $250million per year, will operate within Wood Group PSN after the takeover for an undisclosed fee.
Shale gas operations in the US have proved to be a big success for the Aberdeen-based services group so far, with more than 1900 people employed in the onshore shale business.
That number will be more than doubled following the takeover of Elkhorn, which is expected to be completed by the end of the year.
Current Elkhorn CEO Sean Sullivan will oversee the new group, which specialises in pipeline facility maintenance and fabrication services.
“We are extremely excited to be joining Wood Group,” said Sullivan.
“Elkhorn has achieved good growth over recent years, and we anticipate that in strong markets and with Wood Group’s support we will see this continue.”
The company, which operates in 11 US shale locations – including the Permian and Marcellus ranges – employs around 2200 staff.
Wood Group PSN chief executive Robin Watson said the deal would further boost the company’s growing shale operations.
“Elkhorn’s services and geographic presence are complementary to Wood Group PSN’s existing shale business,” he said.
“We have been greatly impressed by Elkhorn’s management team. Each member of the team shares the same core values as Wood Group.”
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