Wood Group acquires Elkhorn
Wood Group has agreed to acquire Elkhorn Holdings Inc. (Elkhorn), a Wyoming-based provider of construction services for midstream oil and gas facilities in the US shale market.
Elkhorn provides infrastructure-related services such as pipeline and facility maintenance, instrumentation and electrical, civil and mechanical construction, and fabrication to oil and gas and petrochemical companies. Elkhorn, which generated sales of approximately US$ 250 million in 2012, is headquartered in Evanston, Wyoming, and has approximately 2200 personnel. Elkhorn operates from 11 locations across the Niobrara, Permian, Marcellus and Utica shale regions.
Elkhorn will operate within Wood Group PSN and further develop Wood Group鈥檚 US shale business. The company will continue to be led by its existing management team under CEO Sean Sullivan.
The transaction is subject to a number of conditions, including anti-trust approval in the US, and completion is expected in late 2013.
Expanding portfolios
Robin Watson, chief executive of Wood Group PSN, said: 鈥淭he acquisition of Elkhorn is an important part of our US shale strategy and will expand our service portfolio for our US onshore customers. Elkhorn鈥檚 services and geographic presence are complementary to Wood Group PSN鈥檚 existing shale business. Following the acquisition of Elkhorn, Wood Group PSN will have around 4500 US shale-focused personnel.
鈥淲e have been greatly impressed by Elkhorn鈥檚 management team. Each member of the team shares the same core values as Wood Group.鈥�
Sean Sullivan, CEO of Elkhorn, said: 鈥淲e are extremely excited to be joining Wood Group. This combination will greatly benefit Elkhorn鈥檚 customers and employees given our collective breadth of service offerings. Elkhorn has achieved good growth over recent years, and we anticipate that in strong markets and with Wood Group鈥檚 support we will see this continue.鈥�
Adapted from press release by
Read the article online at: /business-news/11112013/wood_group_extends_us_shale_exposure_with_acquisition_of_elkhorn/
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