STATS has executed a Share Purchase Agreement to sell 100% of its issued share capital to Mitsui & Co.
The deal combines the Aberdeenshire-headquartered pipeline technology company with the Japanese group's iron and steel business unit. The transaction is expected to close later this summer, subject to the satisfaction of regulatory approvals.
“The acquisition of STATS is complementary to Mitsui’s plan to establish a strong, sustainable presence in the pipeline maintenance market as a service provider,” said STATS chief executive Leigh Howarth.
“Having worked with the Mitsui team for several months now, we’re delighted to be formally joining forces to pursue opportunities in both the traditional oil and gas pipeline markets and the emerging low carbon markets.”
STATS will continue to deliver its services, products and solutions to customers from its existing operational bases across the globe.
The group operates from headquarters in Kintore, with bases in Edmonton, Houston, Abu Dhabi, Oman, Qatar, Kuala Lumpur and Perth, Australia.
“Supported by Mitsui’s broad energy relationships and investments, we see significant growth potential for STATS from this transaction, and resultantly excellent career development opportunities for all our staff,” continued Howarth.
For Mitsui, this transaction presents an opportunity to achieve market acceleration in sustainable infrastructure maintenance.
“Under its medium-term management plan, Mitsui is aiming to work toward a global energy transition by providing optimal solutions through business,” said Koichi Fujita, chief operating officer of Mitsui Iron & Steel.
“Utilising the equipment and services provided by STATS, Mitsui will also work to strengthen the value chain for its upstream oil and gas interests and businesses, particularly in the areas of CCS and hydrogen.”
Howarth and all other executive members of STATS will remain with the company upon completion of the transaction, while chair and founder Pete Duguid, will retire.
BGF, which has supported STATS since 2012, will realise its investment and exit the business.
Around this time last year, STATS' agreement to sell the business to Australian-listed SRJ Technologies Group fell through.
The company had hoped to acquire STATS UK for £73m, following shareholders executing a 100% share purchase agreement, but blamed market volatility caused by macro, geopolitical and supply chain events.
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