ITS Group, a provider of oilfield equipment and services to the global oil and gas industry, announced a $55m equity investment from leading 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.
Commenting on the funding, Bob Kidd, ITS Group executive chairman, said, “The investment strengthens our balance sheet allowing 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”.
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.
Founded in Aberdeen, Scotland, in 1986 by Mr Kidd, the ITS Group has successfully expanded internationally and today operates with 25 facilities in 16 countries (including the US, Trinidad, Mexico, Venezuala, Egypt, UAE, Saudi Arabia, India, Pakistan, Singapore and China) and a workforce close to 1,100 employees.
Last year, the company extended its international offering by opening three new service centres in Mexico and signed joint venture agreements with Saudi Arabia based, Shaoibi Group and Scomi Group BHD of Malaysia.