North-east company Zenith Oilfield Technology has been bought by Lufkin Industries Holdings UK in a deal worth about £80million.
Zenith is owned by its four directors: Greg Davie, Richard Hamilton, Keith Kettlewell and Leslie Jordan.
The fast-growing company, which operates in the artificial-lift sector of the global oil and gas industry, was founded in 2004.
It has 85 staff operating out of 30 countries, including 50 people at the Inverurie headquarters.
Lufkin Industries Holdings UK is a subsidiary of Lufkin Industries, of Texas.
Zenith managing director Mr Davie said: “This is an exciting deal for Zenith, its staff and customers.
“As a technology-focused business, Zenith has built its international reputation through its commitment to research and development.
“As part of Lufkin, we will be able to combine research and development expertise to fast-track the development of new automated artificial-lift technology in particular.
“All the directors and staff will remain with the company and it will be business as usual for all our customers and suppliers.”
Zenith is expected to have turnover of £25.7million and ebitda (earnings before interest, tax, depreciation and amortisation) of £6.2million in the financial year to May.
The new owner said ebitda was expected to nearly double in 2013 because of a planned rollout of new technologies.
John F. “Jay” Glick, chief executive of the US company, said: “The acquisition of Zenith is a strong complement to our fast-growing automation business and accelerates our strategic goal of offering our customers a fully integrated solutions package of well-automation capabilities to enhance the effectiveness of our artificial-lift products.
“Zenith’s product portfolio, with its state-of-the-art downhole sensing, automated system optimisation and design of custom completion equipment for artificial-lift applications, is a game-changer as it moves our well-management and performance capabilities from the surface to downhole. Zenith’s technology allows oil and gas producers to measure downhole conditions with real-time, accurate and repeatable data and adjusts surface equipment accordingly.”
Mr Glick said about 70% of Zenith’s revenue was from the Middle East and Far East, and he expected this acquisition to help Lufkin gain a foothold in several international markets targeted for entry or expansion for its artificial-lift portfolio.
Barclays Capital was financial adviser to Lufkin, while Zenith was advised by Simmons and Company International.