SRJ Technologies to acquire pipeline integrity firm STATS
SRJ Technologies is conducting a $142 capital raising to fund the acquisition of STATS.
Specialised engineering company SRJ Technologies Group (ASX: SRJ) has confirmed it will conduct a $142 million capital raising to fund the acquisition of pipeline integrity solutions firm STATS (UK).
The raising will be in the form of a fully underwritten offer of CHESS depository interests (or CDIs) and the proceeds will also be used for working capital for the combined group once the transaction has been completed.
Morgans Corporate has been appointed lead manager and underwriter to the raising.
Supplementing services
The STATS acquisition will supplement SRJ’s services to help capitalise on growth in the global energy market and the transition to green energy.
It is planned to accelerate SRJ’s strategic priorities in asset integrity, with the company leveraging STATS’ global presence to advance cross-selling of its products and technologies.
It will also look to capture growth opportunities in the energy transition sector with its broader range of asset integrity solutions.
Global leader
SRJ chief executive officer Alexander Wood said the acquisition will move the company closer to its vision of becoming a global leader in asset integrity solutions for the energy industry.
“This transaction will add value, differentiation and scale to [our business],” he said.
“It will drive long-term growth with meaningful revenue synergy opportunities while delivering a highly-responsive, solutions-led service to our clients.”
Pipeline integrity solutions
Based in Scotland, STATS specialises in technology-led pressurised pipeline integrity solutions which provide leak-tight double block and bleed pipeline isolation, facilitating the safe and efficient maintenance and repair of critical onshore and offshore pipeline infrastructure for the global energy industry.
The company has eight global offices and a blue-chip customer base with revenues split across North America, Europe, the Middle East and Asia Pacific regions.
In the 2020 financial year, STATS generated a revenue of $78.9 million and earnings before interest, taxation, depreciation and amortisation (EBITDA) of $11.3 million.
Mr Wood said the acquisition will provide SRJ customers with a wider and more integrated approach towards managing asset integrity.