Pipeline Technology Specialist STATS UK Acquired by SRJ Technologies for £73 Million
STATS (UK) Limited announced that its shareholders executed a Share Purchase Agreement to sell 100% of the issued share capital of the company to SRJ Technologies Group.
The acquisition combines Aberdeenshire-based STATS with SRJ’s portfolio of technologies that are positioned to capitalize on global energy market growth and the transition to green energy.
SRJ is a publicly listed company on the Australian Securities Exchange and will undertake an offer of shares to raise A$142m to fund the cash component of the purchase price for STATS and to provide working capital for the combined group post-completion.
The transaction is subject to customary conditions, including SRJ obtaining the required shareholder approvals, and is expected to close in the first quarter of 2022.
The consideration payable by SRJ to STATS shareholders will comprise a combination of SRJ shares (traded on the ASX) and cash. The transaction has an implied value of approximately £73.1 million ($94 million) based on a share price of SRJ of A$0.50 per share.
STATS, which provides innovative, technology-led pressurized pipeline integrity solutions, including its BISEP® and Tecno Plug® products, will accelerate SRJ’s strategic priorities in the asset integrity market.
SRJ will leverage the global presence of STATS to exploit cross-selling opportunities.
“The two groups share a similar DNA that is driven by a solutions-led approach to our client’s asset integrity issues,” said Leigh Howarth, CEO of STATS. “We are truly excited by the prospect of this next stage in STATS growth, not only to offer additional innovative solutions to our clients, but to do it with a trusted and capable SRJ team.
For SRJ, this transaction presents an attractive opportunity to achieve market acceleration by expanding global client relationships and locations, supported by opportunities presented by an energy industry in transition towards net zero.
“SRJ’s vision is to become a global leader in asset integrity solutions for the energy industry, and this transaction will add value, differentiation and scale to SRJ,” said Alexander Wood, CEO of SRJ. “It will drive long-term growth with meaningful revenue synergy opportunities whilst delivering a highly responsive, solutions-led service to our clients.”
Leigh Howarth will join SRJ’s Board of Directors upon completion of the transaction whilst continuing as CEO of STATS. Pete Duguid, Chairman and founder of STATS, will remain with the business providing strategic direction, particularly in relation to key business development activities in North America.
The private equity investor, Business Growth Fund, which has supported STATS since 2012, will realize its investment and exit the business.
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