Reservoir Group, a newly formed UK business, has just completed its first acquisition which sets the group on its way to becoming a global market leader in integrated downhole drilling products and services to the oil and gas industry.
The Aberdeenshire-headquartered group backed by Houston private equity firm SCF Partners has acquired US firm Dowdco which specialises in coring services and the manufacture of coring tools and drill bits.
Based in Midland Texas, Dowdco has over 50 years experience and is a well known force in the onshore US market. With about 120 people, a turnover of UK13 million last year and a new manufacturing plant in Conroe, the company is well placed to capitalise on the current buoyant drilling sector.
Reservoir Group, was incorporated last year when SCF Partners backed a management buy-out of Corpro to provide a platform from which to build a global business focused on down-hole drilling products and services with projected turnover of UK250 million in five years.
Pascal Bartette, chief executive officer of Reservoir Group said: "Combining the success of Dowdco in the US market with Corpro's success in Europe, Africa, the Far East, the Caspian, the Middle-east and South America makes us the number one provider of coring services worldwide.
"This acquisition represents the next step in reaching our ambitious five year target. Through organic growth and further acquisitions of niche, independent market-leading companies, we will create an internationally-focused market leader that offers integrated, specialist services to the down-hole drilling market."
Other acquisitions will follow as Reservoir Group is already targeting other independent market leaders within their niche sectors that provide good product differentiation.
"We want to build a critical mass that will give us global reach and generate synergies within the group allowing these companies to realise their full growth potential more quickly and effectively," added Mr Bartette.
"The companies that join us will continue to trade under their own brand identity and ideally under the same management team so that the group becomes renowned for first-class services provided by autonomous specialist companies who remain focused on their own product lines."
In line with Reservoir Group's business model, the founding director of Dowdco, Dennis Yeager will continue to manage the business and its North American operations.
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