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Tue January 18 2022

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Pipeline specialist changes hands in £73m deal

15 Dec 21 Aberdeenshire-based pipeline company Stats (UK) has been sold to Australia’s SRJ Technologies Group.

Leigh Howarth and Pete Duguid
Leigh Howarth and Pete Duguid

Shareholders of Stats executed a share purchase agreement to sell 100% of the issued share capital in a transaction worth approximately £73.1m.

SRJ is a publicly listed company on the Australian Securities Exchange (ASX).  

The transaction is subject to customary conditions, including SRJ obtaining the required shareholder approvals, and is expected to close in the first quarter of 2022.

“The two groups share a similar DNA that is driven by a solutions-led approach to our client’s asset integrity issues,” said Leigh Howarth, CEO of Stats. “We are truly excited by the prospect of this next stage in Stats growth, not only to offer additional innovative solutions to our clients, but to do it with a trusted and capable SRJ team.

“SRJ has acquired Stats for our market leading technology, our established global reach, excellent customer base and experienced and highly skilled staff. With its ASX listing and access to capital markets, this gives the combined businesses the platform to invest in strategic locations and product solutions that are yet to be developed to their full potential, offering job security and career enhancement for all.

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“We are fully aligned with SRJ’s purpose and aspirations, and together, we will continue to support our clients with safe, reliable and technically superior solutions and continuous innovation.”

Alexander Wood, CEO of SRJ, said: “SRJ’s vision is to become a global leader in asset integrity solutions for the energy industry, and this transaction will add value, differentiation and scale to SRJ,” said. “It will drive long-term growth with meaningful revenue synergy opportunities whilst delivering a highly responsive, solutions-led service to our clients.”

Howarth will join SRJ’s board of directors upon completion of the transaction whilst continuing as CEO of Stats. Pete Duguid, Chairman and founder of Stats, will remain with the business providing strategic direction, particularly in relation to key business development activities in North America.

The private equity investor, Business Growth Fund, which has supported Stats since 2012, will realise its investment and exit the business.

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