A Norwegian private equity firm has acquired a 95% stake in an Aberdeen-based oil well diagnostics, data and asset integrity evaluation specialist.
The price paid by Oslo-based Norvestor – which manages funds of more than 11 million Norwegian kroner – to take control of READ Cased Hole was not disclosed.
The RCH management team will hold the remaining 5% equity in the company which had consolidated pro-forma revenues of £5.5 million in 2015 and is expected to grow by more than 20% by the end of this year. All 33 staff and management are expected to remain at RCH.
Norvestor mainly focuses on investment opportunities in growth companies in Norway and Sweden, with potential to achieve a leading Nordic or international market position either through organic growth, through acquisitions or by expanding into new countries.
With a 25-year history of cased-hole logging experience, RCH helps oil exploration companies to better understand the performance of their wells. This enables operators to make qualified decisions quickly and with confidence, minimising risk and maximising production efficiency from their producing wells.
Roy Martin, Chief Executive, READ Cased Hole, explained: “Our partnership with Norvestor marks a new era for READ Cased Hole, and they are as eager as we are to continue on our ambitious plan to consolidate our market position as well as expanding our range of services and geographical reach”.
Tor Erling Gunnerod, Partner in Norvestor Equity and chairman-designate at RCH, added: “READ Cased Hole is a well-established company with an impressive development and solid growth through a challenging period in the oilfield services market.
“We are partnering up with a strong management team with proven track record and a history of building great businesses.”