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Epi-V sells i-Tec Well Solutions stake amid US shale industry growth

2 Jan 2013

Oil and gas-focused UK growth investor Epi-V has agreed to sell its majority stake in i-Tec Well Solutions, in a deal that values the company at just over $108m.

Toronto-based strategic trade buyer Trican will acquire all the shares and discharge the existing debt of i-Tec holding company Petro Tools for $30m in cash and 2.4 million Trican common shares.

Trican has also agreed to pay deferred consideration of up to $47.1m depending on i-Tec hitting certain financial targets for 2013.

Epi-V picked up a “significant” stake in the Hampshire-headquartered company for £3.5m in 2008, saying it planned to commercialise i-Tec’s portfolio of specialist oil and gas drilling equipment and grow the business internationally.

The firm said that i-Tec was now making significant inroads into the growing US shale gas market.

Epi-V partner Kevin Forbes said, “This deal crucially signals more broadly the huge growth that lies ahead within shale gas exploration and production on both sides of the Atlantic.

“Epi-V invested in i-Tec confident in both its offering and the market for shale gas in the US and more globally.

“The US shale gas market is already maturing and others including the UK will follow suit.

“Smart investors in shale gas and fracking-related support services can help the industry to grow and ensure the technology which drives safety and efficiency will allow for financial and economic benefits including jobs to flow through to local and national economies.”

Epi-V invests between £2m and £10m of growth capital in UK and international businesses in the oil and gas sector.

In April last year the firm hired the former head of WestLB’s investment banking business, Grahame Cook, as chairman.

Cook previously held senior management roles at Barclays de Zoete Wedd and UBS.

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