Wood Group said yesterday it had acquired US firm Mitchell’s Oil Field Services for an initial £83million, extending its reach into North America’s booming shale industry.
The deal could be worth up to £112.2million, because of further payments linked to future performance.
Mitchell’s provides maintenance, installation and fabrication services to the onshore oil and gas market.
It is owned by Stone Arch Capital, a US private-equity group, and management.
Wood Group expects to complete the acquisition, subject to anti-trust approval, during the final quarter of 2012.
Derek Blackwood, Americas president for Wood Group PSN, said: “The addition of Mitchell’s significantly expands our service offering and increases our presence in the region to about 650 personnel operating from nine locations. This acquisition is in line with our strategy to expand our presence in the US oil shales and follows our purchase earlier this year of Wood Group Duval, which services the Eagle Ford shale region in south Texas.”
Wood’s acquisition of Duval – announced by the Aberdeen energy service giant last month – was understood to be worth be more than £10million.
Mitchell’s business is focused on the Bakken shale region, one of the most active exploration and production oil formations in North America. The region has seen strong growth since the recent advent of new and unconventional technologies.