US-based Wood Group will purchase Mitchell’s Oil Field Services for an initial consideration of $135m, subject to anti-trust approvals.
Wood Group will provide further earn out payments due in 2015
based on Mitchell’s future performance.
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Mitchell’s Oil Field Services is a provider of maintenance, installation and fabrication services in the Bakken shale region in the US.
Wood Group PSN president Americas Derek Blackwood said the acquisition of Mitchell expands the company’s offerings and also increases its presence to approximately 650 personnel operating from nine locations.
"We look forward to extending relationships with existing clients and building relationships with new clients in the Bakken by offering them our full range of complementary services," said Blackwood.
"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."
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By GlobalDataMitchell president Todd Appel said, "We are extremely excited to be joining Wood Group. Mitchell’s has achieved strong growth over recent years, and we anticipate the strong oil shale market, momentum in our business and the support of Wood Group will enable continued growth."
Post sale, Mitchell’s will operate within Wood Group PSN and will be led by the existing management team.
Mitchell is expected to integrate with the Wood Group’s existing operations and maintenance, construction supervision and survey services.
The transaction is expected to be complete in the fourth quarter of 2012.
Image: Wood Group PSN president Americas Derek Blackwood. Photo: Wood Group PSN.
