Workers at energy service firm Wood Group PSN marked the newly formed company’s first day in business yesterday.
The firm was created after Aberdeen-based Wood Group formally completed the £606million acquisition of smaller city rival PSN on Wednesday.
PSN will be integrated into Wood’s production facility arm, resulting in a unit employing 23,000 people worldwide.
The new company is expected to have annual revenue of about £1.8billion.
It is based in Aberdeen but will operate in more than 35 countries.
The acquisition was only cleared by the Office of Fair Trading last month, after first being agreed in December, and means Wood Group’s workforce is now around 38,000 after PSN’s 8,500 staff were added in.
Bob Keiller, who was chief executive at PSN and is now CEO at Wood Group PSN, said the deal was a momentous occasion for both companies, adding: “Our aim is for Wood Group PSN to be the best brownfield service company to work for and the best company to work with.
“We have excellent relationships across a broad customer base and we have the capacity to invest and develop our people and our processes so that we can offer an unrivalled service.”
Wood Group chief executive Allister Langlands said: “Wood Group PSN will have a larger footprint, deeper resources and capabilities and, by selecting best practices, be able to deliver additional added value to customers.
“The combined business will be better positioned to help tackle key industry issues, including operational assurance, competency, reliability and asset integrity.”
Fast-growing PSN was formed five years ago when the management of KBR Production Services took over the operation.
The parent, which last month re-entered the FTSE 100 index after dropping out of the blue-chip company list several years ago, plans to pay off the debt it has taken on with the PSN acquisition by selling its well-support business to General Electric.
In February, chairman Sir Ian Wood said he expected the group to make several other acquisitions, including one worth more than £60million, within a year.