Wood Expands Bakken Presence with Acquisition
Wood Group has agreed to acquire Mitchell's Oil Field Services, Inc., a provider of maintenance, installation and fabrication services in the oil-rich Bakken shale region for an initial consideration of $135 million. Further earn out payments due in the period to 2015 based on Mitchell's future performance may be payable. The acquisition is expected to be earnings enhancing from completion.
The transaction is subject to anti-trust approval in the US, with completion expected in the fourth quarter of 2012.
Mitchell's will operate within Wood Group PSN, and will complement the division's existing operations & maintenance, construction supervision and survey services in the region. Mitchell's will continue to be led by the existing management team.
"We are pleased to welcome Mitchell's into the Wood Group PSN family,'' said Derek Blackwood, president - Americas for Wood Group PSN. ''The addition of Mitchell's significantly expands our service offering and increases our presence in the region 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.
Blackwood added, "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."
Todd Appel, president of Mitchell's, 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."
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