Kintore’s STATS sold for £73m to SRJ Technologies

Kintore, Aberdeenshire-based oil and gas pipeline specialist STATS (UK) Limited announced that its shareholders agreed to sell the company to SRJ Technologies Group plc (SRJ) for an implied value £73.1 million in cash and shares.

SRJ Technologies has its head office in Jersey and its shares trade on the Australian Securities Exchange.

STATS supplies “pressurised pipeline isolation, hot tapping and plugging services” to the global oil, gas and petrochemical industries.

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

“The acquisition combines Aberdeenshire-based STATS with SRJ’s portfolio of disruptive technologies that are well positioned to capitalise on global energy market growth and the transition to green energy,” said STATS.

“SRJ is a publicly listed company on the Australian Securities Exchange (ASX: SRJ), and will undertake an offer of shares to raise A$142m to fund the cash component of the purchase price for STATS and to provide working capital for the combined group post-completion.

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

“The consideration payable by SRJ to STATS shareholders will comprise a combination of SRJ shares (traded on the ASX) and cash.

“The transaction has an implied value of approximately £73.1 million based on a share price of SRJ of A$0.50 per share.

“STATS, a market leader in the provision of innovative, technology-led pressurised pipeline integrity solutions, including its BISEP and Tecno Plug products, will accelerate SRJ’s strategic priorities in the asset integrity market.

“SRJ will leverage the global presence of STATS to exploit cross-selling opportunities of SRJ’s disruptive products and technologies, whilst also looking to capture the significant growth opportunities in the energy transition sector with its broader range of asset integrity solutions.”

STATS CEO Leigh Howarth said: “The two groups share a similar DNA that is driven by a solutions-led approach to our client’s asset integrity issues.

“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.

“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.”

Howarth will join SRJ’s board upon completion while 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.

SRJ Technologies CEO Alexander Wood 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.

“It will drive long-term growth with meaningful revenue synergy opportunities whilst delivering a highly responsive, solutions-led service to our clients.”

SJR said in a statement: “The consideration payable by the company to STATS shareholders will comprise a combination of SRJ shares (traded on the ASX) and cash.

“The transaction has an implied value of approximately A$133.8 million (£73.1 million) based on a share price of SRJ of A$0.50 per share.

“The company will undertake an offer of shares to raise A$142 million (£77.6m) to fund the cash component of the purchase price for STATS and provide working capital for the combined group post-completion.

“The company has appointed Morgans Corporate Limited to lead manage and underwrite the offer …”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.