A Scottish energy services group has struck a double acquisition deal in the latest move in its aggressive global expansion.
Dyce-headquartered Centurion Group has bought fellow Aberdeenshire-based fluid filtration business Osprey3 and Texas valve technology firm G5S Energy Services in what are thought to be multi-million-pound deals.
The acquisitions, funded through a combination of cash and equity, are expected to deliver “immediate and significant contributions” to Centurion’s revenue and profitability.
Osprey3, which was founded in 1997 and has around 20 staff, provides filtration products and services to the oil and gas industry.
G5S’s services include the rental of equipment to support well fracking operations and the provision of on-site, chemical dispensing units. Centurion said the US deal – which represents the second acquisition it has completed in Texas this year – strengthens its market position in North America and increases the opportunity for cross-selling of existing services.
Fernando Assing, chief executive of Centurion, said: “This news emphasises our commitment to using technology and integration as a differentiator and continues to expand our diversification into multiple industries.
In addition, Osprey3 increases our environmental credentials and ability to provide more environmentally friendly solutions to our customers”.
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Ian Michie, general manager of Osprey3, which had net assets of more than £7 million at the time of its latest financial year end in June, commented: “Centurion’s desire to use technology to make positive change and support environmentally sustainable operations, combined with our knowledge and services, will create an even better company for our customers and employees.”
In June, Centurion swooped on another Texas-based engineering firm to bolster its presence in the US shale industry.
It bought valve technology firm Totalfrac for an undisclosed sum in a move Centurion said would enable it to widen its services to operators in the shale basins in the US.
That step came just two weeks after the group, which specialises in areas such as accommodation rental, secured an additional £45m in firepower from its bankers for acquisitions.
Centurion saw a strong improvement in financial performance in its last financial year, with revenue increasing by 40 per cent and profits more than doubling on the back of increasing demand in the US and Canada and stability in the group’s other international markets.
The business, which has around 300 employees in Scotland, is majority owned by SCF Partners.
The remainder is held by Stage Capital and other institutions including Viburnum Funds, as well as members of the management team and employees.