Reservoir Group Snags New Downhole Drilling Tools Manufacturer
Reservoir Group has just completed its fifth acquisition. The Scottish group, which aims to become a global market leader in integrated downhole drilling products and services to the oil and gas industry, has snapped up an Australian business which designs and manufactures proprietary downhole drilling tools in a multi-million pound deal.
Extreme Machining is most famous for its WedgeTail Roller Reamer and ShingleBack Disposable IB Stabilizer products -- tough tools which meet the challenges of oilfield drilling around the world and named after indigenous creatures which can survive the harsh conditions of the Australian outback.
Founded in 2002, Extreme Machining has an extensive oilfield track record, and utilises state-of-the-art CNC machinery to design and manufacture the tools from its large plant in South Australia. The company, which turns over £4 million and employs 25 staff, provides both the international and Australian markets with proprietary drilling equipment as well as assisting its local clients with machine shops located in Adelaide. A new manufacturing plant is also about to open in the central pacific region.
This transaction, which comes hot on the heels of the group’s acquisition of London-based Storecore and Aberdeen-based Omega Data Services Limited, reinforces Reservoir Group’s geographical coverage and adds a recognised line of products which are in high demand globally.
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 a projected turnover of £250 million in five years.
Pascal Bartette, CEO of Reservoir Group said, “This acquisition takes us another step closer to reaching our ambitious five year target. It represents the introduction to Reservoir Group of a range of recognized products whose international distribution can be significantly enhanced by the global infrastructure of the group."
In line with Reservoir Group’s business model, the managing director of Extreme Machining, Mat Kennedy, will continue to manage the business and drive international growth.
Commenting on this transaction he said, “ Reservoir Group offers the platform we need to distribute our products worldwide. More importantly we will now have the capacity to design and market new downhole tools. These, together with our existing products will be marketed internationally through a newly created entity called X Drilling Tools."
Peter Stuart, Reservoir Group Chairman added, “The group is continuing to meet its targets and already seeing real growth from the synergies starting to emerge between the acquired businesses.”