SRJ Technologies to Buy STATS Group

December 14, 2021

STATS (UK) Limited Chief Executive Officer Leigh Howarth, left, and Chairman and founder Pete Duguid.
STATS (UK) Limited Chief Executive Officer Leigh Howarth, left, and Chairman and founder Pete Duguid.

ASX-listed SRJ Technologies Group plc has struck a deal to buy the UK-based oilfield services firm STATS.

STATS said Tuesday that its shareholders had executed a Share Purchase Agreement to sell 100% of the issued share capital of the company to SRJ Technologies.

"The acquisition combines Aberdeenshire-based STATS with SRJ’s portfolio of disruptive technologies that are well-positioned to capitalize on global energy market growth and the transition to green energy," STATS, which provides pressurized pipeline integrity solutions, said.

SRJ is a publicly listed company on the Australian Securities Exchange. It will undertake an offer of shares to raise A$142 million to fund the cash component of the purchase price for STATS and to provide working capital for the combined group post-completion.

The transaction is subject to customary conditions, including SRJ obtaining the required shareholder approvals, and is expected to close in the first quarter of the calendar year 2022.

The consideration payable by SRJ to STATS shareholders will comprise a combination of SRJ shares (traded on the ASX) and cash. The transaction has an implied value of approximately £73.1 million (~$96,8 million) based on a share price of SRJ of A$0.50 per share.

"The two groups share a similar DNA that is driven by a solutions-led approach to our client’s asset integrity issues” said Leigh Howarth, CEO of STATS. “We are truly excited by the prospect of this next stage in STATS growth, not only to offer additional innovative solutions to our clients but to do it with a trusted and capable SRJ team.

"SRJ has acquired STATS for our market-leading technology, our established global reach, excellent customer base, and experienced and highly skilled staff. With its ASX listing and access to capital markets, this gives the combined businesses the platform to invest in strategic locations and product solutions that are yet to be developed to their full potential, offering job security and career enhancement for all."

"SRJ’s vision is to become a global leader in asset integrity solutions for the energy industry, and this transaction will add value, differentiation, and scale to SRJ,” said Alexander Wood, CEO of SRJ. “It will drive long-term growth with meaningful revenue synergy opportunities whilst delivering a highly responsive, solutions-led service to our clients.”

Leigh Howarth will join SRJ’s Board of Directors upon completion of the transaction while continuing as CEO of STATS. Pete Duguid, Chairman and founder of STATS, will remain with the business providing strategic direction, particularly in relation to key business development activities in North America.

The private equity investor, Business Growth Fund, which has supported STATS since 2012, will realize its investment and exit the business, STATS said.



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