Aberdeenshire pipeline specialist employing 340 staff bought by Japanese giant

Aberdeenshire pipeline technology specialist Stats Group has been acquired by a Japanese company just over a year since a potential takeover by an Australian peer was called off.

The Kintore-headquartered group, which employs more than 340 people globally, said a deal had been struck to sell 100 per cent of the issued share capital of the company to Mitsui & Co. No value has been disclosed. The acquisition combines Stats with Mitsui’s iron and steel business unit, with the closing of the transaction expected later this summer subject to regulatory competition approvals.

Stats chief executive Leigh Howarth and all other executive members will remain with the company upon completion of the deal, while Pete Duguid, chairman and founder, will retire. Private equity investor Business Growth Fund, which has supported Stats and its global expansion since 2012, will realise its investment and exit the business.

Howarth said: “The acquisition of Stats is complementary to Mitsui’s plan to establish a strong, sustainable presence in the pipeline maintenance market as a service provider. Having worked with the Mitsui team for several months now, we’re delighted to be formally joining forces to pursue opportunities in both the traditional oil and gas pipeline markets and the emerging low carbon markets.”

Stats operates from its headquarters in Aberdeenshire, as well as Edmonton, Canada; Houston, US; Abu Dhabi, Saudi Arabia, Oman and Qatar in the Middle East; Kuala Lumpur in Malaysia and Perth, Australia. It will continue to deliver its services and products to customers from its existing operational bases across the globe.

Howarth added: “Supported by Mitsui’s broad energy relationships and investments, we see significant growth potential for Stats from this transaction, and resultantly excellent career development opportunities for all our staff.”

Koichi Fujita, chief operating officer of Mitsui Iron & Steel, said: “Under its medium-term management plan, Mitsui is aiming to work toward a global energy transition by providing optimal solutions through business. Utilising the equipment and services provided by Stats, Mitsui will also work to strengthen the value chain for its upstream oil and gas interests and businesses, particularly in the areas of carbon capture and storage (CCS) and hydrogen.”

Stats principal activity is the provision of pressurised pipeline isolation, “hot tapping” and plugging services to the global oil, gas and petrochemical industries. Mitsui is a global trading and investment company with a diversified business portfolio that spans more than 60 countries.

Stats principal activity is the provision of pressurised pipeline isolation, 'hot tapping' and plugging services to the global oil, gas and petrochemical industries.

The tie-up comes after a potential £73 million acquisition of Stats Group was called off in May last year. In December 2021, Stats revealed that it had reached agreement on the transaction with SRJ Technologies Group, a publicly listed company on the Australian Securities Exchange (ASE). SRJ planned to undertake an offer of shares to fund the deal and provide working capital for the combined group, but revealed last May that the transaction would not proceed. The company said it continued to believe in the merits of the merger but the decision was the result of market volatility caused by underlying macro, geopolitical and supply chain events.