Lime Rock Partners invests in ITS Group
ITS Group, a specialist provider of oilfield equipment and services to the global oil and gas industry, has received a $55 million equity investment from energy-focused private equity firm Lime Rock Partners. The agreement provides Lime Rock with a minority stake in ITS Group in return for providing growth capital to be used to support the company's growth aspirations as it aims to become a major global player in the oilfield drilling sector.
Lime Rock managing directors Lawrence Ross and Saad Bargach will join the ITS Group board as non-executive directors to help provide strategic guidance to the company. "I am delighted to welcome Lawrence and Saad to the board," said Kidd. "Their experience and expertise will be hugely beneficial to the group."
Founded in Aberdeen, Scotland in 1986 by Kidd, the ITS Group has expanded internationally and today operates with 25 facilities located worldwide and a workforce of nearly 1,100 employees. The group provides a wide range of oilfield drilling services to the global energy industry including drilling and pressure control equipment, fishing, casing running, and machine shop services.
ITS Group recently announced its financial results for the year ended December 2008. Turnover increased 47% in 2008 to $143.6 million building on a significant capital investment program. In 2008, the group invested $62.4 million in plant and equipment, and earnings before interest, taxes, depreciation, and amortization (EBITDA), before one-off costs, increased by 50% to $47.2million. The group has continued with its program of investment in 2009, both in infrastructure, people, and equipment.
Photo courtesy of ITS Group
Bob Kidd, ITS Group executive chairman commented, "This is an exciting time for the group with unprecedented levels of opportunity in a challenging environment. The investment strengthens our balance sheet and allows 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."
Jeff Corray, ITS Group CEO, 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 has enabled this move as we position ourselves for the next step-change in the business."
ITS has 25 operational facilities in 16 countries including the United States, Trinidad, Mexico, Venezuela, Egypt, the United Arab Emirates, Saudi Arabia, India, Pakistan, Singapore, and China. In the past year, the company has opened three new service centers in Mexico and signed joint venture agreements with Saudi Arabia based, Shaoibi Group, and Scomi Group BHD of Malaysia.
The principal activities of the ITS Group are the provision of drilling and pressure control equipment, the provision of casing running and fishing services, as well as machine shop manufacturing, inspection and refurbishment services. The customer base ranges from nationals, independents, and major oil companies to drilling contractors and oilfield service companies.
Established in 1998, Lime Rock manages $3.8 billion of private capital for investment in the energy industry through Lime Rock Partners, investors of growth capital in energy companies worldwide, and Lime Rock Resources, acquirers and operators of oil and gas properties in the United States. With $3 billion under management, Lime Rock Partners is a long-term investor of growth capital in exploration and production, energy service, and oil service technology companies worldwide. The firm has offices in Aberdeen, Dubai, Houston, and Westport, Conn.
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