ITS Group, a specialist provider of oilfield equipment and services to the global oil and gas industry, announced a $55m equity investment from leading energy-focused private equity firm Lime Rock Partners.
The agreement provides Lime Rock with a minority stake in ITS Group in return for providing growth capital to be used to support the company’s growth aspirations as it aims to become a major global player 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.”
ITS Group recently announced a strong set of financial results for the year ended December 2008. Turnover increased 47% in 2008 to $143.6m building on a significant capital investment program. In 2008, the Group invested $62.4m in plant and equipment, and earnings before interest, taxes, depreciation and amortisation (EBITDA), before one-off costs, increased by 50% to $47.2m. The Group has continued with its programme of investment in 2009, both in infrastructure, people and equipment.