Wood Group enhances US shale exposure with acquisition of Elkhorn
HOUSTON, November 11, 2013— Wood Group has agreed to acquire Elkhorn Holdings Inc. ("Elkhorn"), a Wyoming-based provider of construction services for midstream oil & 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 & gas and petrochemical companies. Elkhorn, which generated sales of approximately $250 million in 2012, is headquartered in Evanston, Wyoming, and has approximately 2,200 personnel. Elkhorn operates from 11 locations across the Niobrara, Permian, Marcellus and Utica shale regions.
Elkhorn will operate within Wood Group PSN and further develops Wood Group's US shale business. Elkhorn 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.
Robin Watson, chief executive of Wood Group PSN, said: "The acquisition of Elkhorn is an important part of our US shale strategy and will expand our service portfolio for our US onshore customers. Elkhorn's services and geographic presence are complementary to Wood Group PSN's existing shale business.
Following the acquisition of Elkhorn, Wood Group PSN will have around 4,500 US shale-focused personnel.
"We have been greatly impressed by Elkhorn's management team. Each member of the team shares the same core values as Wood Group."
Sean Sullivan, CEO of Elkhorn, said: "We are extremely excited to be joining Wood Group. This combination will greatly benefit Elkhorn's 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's support we will see this continue."
Notes to Editors
Wood Group is an international energy services company with around $7bn sales, employing about 43,000 people worldwide and operating in 50 countries. The Group has three businesses – Wood Group Engineering, Wood Group PSN and Wood Group GTS - providing a range of engineering, production support, maintenance management and industrial gas turbine overhaul and repair services to the oil & gas, and power generation industries worldwide. www.woodgroup.com
Wood Group PSN is a global provider of pre-operations, hook up & commissioning, operations & maintenance, engineering, construction, project management, training and decommissioning services to the energy industry. Employing over 29,000 people in more than 40 countries, Wood Group PSN offers high-integrity brownfield services that support customers to optimize performance, maintain production, reduce operating costs and provide integrity assurance. www.woodgroup-psn.com
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