Lime Rock Partners, an energy-focused private equity firm, has invested $55m in ITS Group, a provider of oilfield equipment and services to the oil and gas industry.
The investment, which earned Lime Rock a minority stake, will be used to support the company’s growth as it aims to become a leader in the oilfield drilling sector.
Bob Kidd, ITS Group executive chairman, said, “This is an exciting time for the Group with unprecedented levels of opportunity in a challenging environment. The investment strengthens our balance sheet allowing us to continue investing organically and also to pursue the acquisition opportunities that are prevalent in the current market. Lime Rock Partners has an impressive track record supporting growing companies in the sector.”
Lime Rock managing directors Lawrence Ross and Saad Bargach will join the ITS Group board as non-executive directors to help provide strategic guidance to the company.
Founded in Aberdeen in 1986 by Kidd, the ITS Group has expanded internationally and today operates with 25 facilities located worldwide and a workforce close to 1,100 employees.
ITS Group’s turnover increased 47 per cent in 2008 to $143.6m, while EBITDA before one-off costs increased by 50 per cent to $47.2m.
Established in 1998, Lime Rock manages $3.8bn of private capital for investment in the energy industry.
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