STATS Group acquired by Japanese giant Mitsui

Japan’s Mitsui has made a successful bid for Aberdeenshire-based STATS Group, in a deal that also marks the retirement of founder Pete Duguid.

The deal will see the Kintore-based pipeline technology firm combined with Mitsui’s Iron & Steel business, with the Japanese conglomerate promising a plan for “transformation and growth”.

The value of the acquisition was not disclosed, but STATS confirmed there would be no impact on jobs.

The transaction is expected to close this summer, subject to regulatory and competition approvals.

It comes mere months after the group celebrated its 25th anniversary, and amid buoyant forecasts for a 20% bump in revenue this year.

Revenues reached just under £50m for 2021, while forthcoming accounts for full-year 2022 are expected to show an increase of about £10m.

Established in February 1998, the business has grown to set up bases in Edmonton, Canada, and Houston in the US, as well as Abu Dhabi, Oman and Qatar in the Middle East, Kuala Lumpur in Malaysia and Perth, Australia, and employs around 400 staff worldwide.

Those bases will also stay, as STATS intends to keep providing services, products and solutions to customers from its existing footprint across the globe.

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Chief executive Leigh Howarth said the deal was “complementary” to Mitsui’s plan to establish “a strong, sustainable presence” in pipeline maintenance as a service provider.

“Having worked with the Mitsui team for several months now, we’re delighted to be formally joining forces to pursue opportunities in both the traditional oil and gas pipeline markets and the emerging low carbon markets

“Supported by Mitsui’s broad energy relationships and investments, we see significant growth potential for STATS from this transaction, and resultantly excellent career development opportunities for all our staff,” he added.

Mr Howarth and all other executive members of STATS will remain with the company upon completion of the transaction, while chairman and founder Pete Duguid is now set to retire.

The private equity investor behind the group, Business Growth Fund, which has supported STATS since 2012, will also conclude its investment and exit the business.

For Mitsui, this transaction presents an attractive opportunity to achieve market acceleration in relation to sustainable infrastructure maintenance.

“Under its Medium-term Management Plan, Mitsui is aiming to work toward a global energy transition by providing optimal solutions through business,” said Koichi Fujita, Chief Operating Officer of Mitsui Iron & Steel.

“Utilising the equipment and services provided by STATS, Mitsui will also work to strengthen the value chain for its upstream oil and gas interests and businesses, particularly in the areas of CCS and hydrogen.”

Where did it all start?

Founded in 1998 by angel investor Lorraine Porter and her brother, Pete Duguid, Stats supplies pressurised pipeline technology and services to the global oil, gas and petrochemical industries.

The group’s core business remains in the operational maintenance of oil and gas pipeline and piping infrastructure.

But it is also attracting new clients engaged in energy transition because of its emission-reducing technologies.

Stats revealed in late 2021 it was being acquired by Jersey-headquartered and Australia-listed SRJ Technologies in an all-share deal.

But the takeover collapsed last year, with Stats citing macro, geopolitical and supply chain events as the reason.