Japan's Mitsui & Co. has executed a share purchase agreement to acquire 100% of the issued shares of Aberdeen-based STATS (UK) Ltd., a company that manufactures proprietary energy pipeline repair equipment and provides engineering services.
The acquisition is expected to be completed in the summer of 2023 after the necessary approvals have been obtained.
Founded in 1998, STATS currently has operations in nine countries. As a global player in the field of pipeline repair equipment manufacturing and engineering services, STATS services large-diameter, high-pressure pipelines.
"Within the context of creating a circular economy, demand to prolong the life of ageing energy pipeline infrastructure through maintenance and repair is expected to continue to grow. While at the same time, within the framework of energy transition, the necessity to convert existing pipeline infrastructure to the supply of hydrogen, and the capturing, transportation and storage of carbon dioxide (CCS) is required to support a decarbonized society. STATS is uniquely positioned to provide their products and services to support these initiatives," Mitsui said.
"With STATS' position as a market leader in the global energy industry, we are confident that this acquisition will strengthen Mitsui's business processes and provide new opportunities for growth in the areas of Carbon Capture and Storage (CCS) and hydrogen," said Koichi Fujita, COO of Mitsui's Iron & Steel Products Business Unit.
"We will also leverage our network and expertise to maximize STATS' growth potential and achieve market acceleration for sustainable infrastructure maintenance. Strategically, the acquisition will help progress Mitsui's Medium-term Management Plan for transformation and growth, and play a pivotal role in realizing our mission of addressing key issues of today to build brighter futures, everywhere."
“The acquisition of STATS is complementary to Mitsui’s plan to establish a strong, sustainable presence in the pipeline maintenance market as a service provider,” said Leigh Howarth, CEO of STATS.
"Having worked with the Mitsui team for several months now, we’re delighted to be formally joining forces to pursue opportunities in both the traditional oil and gas pipeline markets and the emerging low carbon markets.”
“Supported by Mitsui’s broad energy relationships and investments, we see significant growth potential for STATS from this transaction, and resultantly excellent career development opportunities for all our staff,” continued Howarth.
Leigh Howarth and all other executive members of STATS will remain with the company upon completion of the transaction, whilst Pete Duguid, Chairman and founder of STATS, will retire.
Financial details of the transaction were not disclosed.