Scottish oil service firm International Tubular Services (ITS) was sold yesterday for £82million after its parent company fell into administration.
ITS has been acquired by US group Parker Drilling, of Texas.
The operation was the trading business of ITS Tubular Services (Holdings) and all 1,000-plus jobs are said to be safe. There are 70 people in the Aberdeen area and the rest are spread across the globe.
The deal follows the appointment of Bruce Cartwright, Graham Frost and Ian Green, of PwC, as administrators.
Mr Cartwright, head of business recovery services at PwC in Scotland, could not disclose the level of debts in the parent company, but latest available accounts show loans and overdrafts amounting to £113million at the end of 2011.
Mr Cartwright will be contacting creditors in the next few days. He said that the administration had started on Friday, but sales discussions had been going on for a while.
He added: “The business had expanded into various new territories and that caused a cash strain.”
PwC said Aberdeen-based ITS worked with an extensive customer base of exploration and production companies, drilling contractors and service firms from 22 sites in locations as far afield as China, Columbia, Kazakhstan and the United Arab Emirates.
It primarily rented drilling gear such as tubulars and pressure-control equipment and provided casing running and fishing services.
Bob Kidd founded ITS in 1986, but quit as chairman and chief executive a few months ago after disagreements with fellow bosses.
Parker is an international drilling contractor, drilling service and rental tool supplier to the energy industry in the US and international markets.
Mr Cartwright added: “We are extremely pleased to confirm the sale of ITS to Parker. After much deliberating, the directors took the decision for the group parent company to enter into administration with the aim of implementing the sale of the business as a going concern. The sale means that the business now forms part of a truly global player with the financial capability to invest in its future growth – a move that will positively impact the trading subsidiaries, their employees, customers and suppliers that Parker has acquired.”
Parker CEO Gary Rich said ITS was one of the industry’s leading independent international rental tool and well service companies with a broad footprint and a strong portfolio of products and service capabilities. He added: “This acquisition increases our geographic and product line diversity and enhances our ability to deliver innovative, reliable and efficient results to our customers.”
Joe Chandler, previously chief executive of ITS Tubular Services (Holdings) and now vice-president of Parker’s international rental tool business unit, said: “This is an exciting combination. With the support of Parker, ITS is now in a better condition to provide the best solutions for our customers. As part of Parker, a company with a respected reputation, financial strength, process discipline and dedication to people, we expect to continue to grow our ability to deliver premier rental tools services on a global scale.”
Group started with £5,000
TS Group founder Bob Kidd was named Grampian Industrialist of the Year in 2011 in recognition of his entrepreneurial contribution to business in the region.
The 52-year-old, who was a north-east boxing champion in his teens, began his career as an inspector with Tuboscope in Congo, Africa.
Mr Kidd, who now lives in Cyprus, started ITS Group more than 25 years ago with just £5,000.
He was chief executive until 2007, when Jeff Corray succeeded him and Mr Kidd became executive chairman.
This week’s latest Sunday Times Rich List had valued Mr Kidd at £80million, making him one of the richest men in Scotland.