Two North-east businesses that rent equipment to oil and gas operators are merging to create a global player with a combined turnover of more than £100 million.
Financial details surrounding the deal have not been disclosed but both businesses, which have about 250 staff each, will keep their trading names for the time being.
Centurion provides specialist rental equipment and services on a global scale to the oil and gas and mining sectors. ATR is a leader in the rental, sale and inspection of specialised equipment to the petrochemicals, marine, subsea and offshore oil and gas industries.
The tie-up will see ATR’s chief executive, Keith Moorhouse, take on the same role at the merged group. Centurion’s acting chief executive, Peter Stuart, will take on the role of chairman.
Moorhouse said: “This is a great deal for both parties and their shareholders, all of whom remain in the business. It is also good news for the industry in general, especially at this difficult time. By combining our strengths and creating synergies, we will have a group that is significantly greater than the sum of its parts.”
Simmons & Company International, corporate finance adviser to the energy industry, brokered the deal. Managing director, Nick Dalgarno, said: “The merger brings together two groups which have a natural fit in order to deliver greater value for customers and realise opportunities which would not be available to either business on a stand-alone basis.
“The enlarged group will provide the scale to withstand the challenges of the current market and be very well positioned to win the recovery when it comes.”