ITS, a provider of oilfield equipment and services to the global oil and gas industry, has received a USD55m equity investment from energy-focused private equity firm Lime Rock Partners.
The agreement provides Lime Rock with a minority stake in ITS in return for providing growth capital.
Bob Kidd, ITS Group executive chairman, says: “This is an exciting time for the group with unprecedented levels of opportunity in a challenging environment. 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 board as non-executive directors to help provide strategic guidance to the company.
Founded in Aberdeen in 1986 by Kidd, the ITS has expanded internationally and today operates with 25 facilities strategically located worldwide and a workforce close to 1,100 employees. The group provides a wide range of oilfield drilling services to the global energy industry including drilling and pressure control equipment, fishing, casing running and machine shop services.
Jeff Corray, ITS chief executive officer, says: “Bringing on board an experienced oil and gas investor such as Lime Rock is another key step towards our ambition to become a major global oilfield service company. Private equity revolves around backing people, and I am privileged to work with a first-class team across our group who not only have a passion and drive for what they do but also have tremendous market knowledge.”
