ITS Group of Aberdeen yesterday announced a £34.5million investment in the company from a US private equity firm to help expansion at home and abroad.
The specialist provider of oilfield equipment and services to the global oil and gas industry said that Lime Rock Partners has taken a minority stake in the business.
ITS is aiming to become a major global player in the oilfield drilling sector.
The company, founded in the Granite City in 1986 by Bob Kidd, has expanded internationally and today has 25 facilities worldwide and nearly 1,100 employees.
ITS made pre-tax profits of £13.55million in 2008, against £9.19million the year before. Turnover was £89.76million compared to £60.92million the previous year.
Executive chairman Mr Kidd said: “This is an exciting time for the group, with unprecedented levels of opportunity in a challenging environment.
“The investment strengthens our balance sheet, allowing us to continue investing organically and also to pursue the acquisition opportunities that are prevalent in the current market.
“Lime Rock Partners has an impressive track record supporting growing companies in the sector.”
Lime Rock managing directors Lawrence Ross and Saad Bargach will join the ITS board as non-executive directors to help provide strategic guidance to the company.
Mr Kidd, who is the only other shareholder in ITS, added: “I am delighted to welcome Lawrence and Saad to the board. Their experience and expertise will be hugely beneficial to the group.” ITS chief executive Jeff Corray added: “Bringing on board an experienced oil and gas investor such as Lime Rock is another key step towards our ambition to become a major global oilfield service company.
“Private equity revolves around backing people, and I am privileged to work with a first-class team across our group who not only have a passion and drive for what they do but also have tremendous market knowledge. The depth of quality and considerable abilities of our people have enabled this $55million (£34.5million) investment from Lime Rock and positions ourselves for the next step-change in the business.”
Mr Ross, managing director at Lime Rock Partners’ Aberdeen office, said: “Bob Kidd has carefully and courageously pursued his plan to build ITS internationally.
“He has not only succeeded at that, but also opened the door to yet-greater growth.”