Leigh Howarth: a platform to invest

STATS (UK), the Aberdeenshire-based specialist pipeline engineering company, has been acquired by SRJ Technologies Group in a cash and shares deal worth £73.1 million.

SRJ, which is listed on the Australian Securities Exchange, will raise A$142m in a share issue to fund the cash component of the purchase price for STATS and to provide working capital for the combined group post-completion.

The transaction is expected to close in the first quarter of 2022.

SRJ will leverage the global presence of STATS to exploit cross-selling opportunities of SRJ’s disruptive products and technologies, whilst also looking to capture the significant growth opportunities in the energy transition sector with its broader range of asset integrity solutions.

Leigh Howarth, CEO of STATS, said: “We are truly excited by the prospect of this next stage in STATS growth, not only to offer additional innovative solutions to our clients, but to do it with a trusted and capable SRJ team.

“SRJ has acquired STATS for our market leading technology, our established global reach, excellent customer base and experienced and highly skilled staff.

“With its ASX listing and access to capital markets, this gives the combined businesses the platform to invest in strategic locations and product solutions that are yet to be developed to their full potential, offering job security and career enhancement for all.

“We are fully aligned with SRJ’s purpose and aspirations, and together, we will continue to support our clients with safe, reliable and technically superior solutions and continuous innovation.”

For SRJ, this transaction presents an attractive opportunity to achieve market acceleration by expanding global client relationships and locations, supported by opportunities presented by an energy industry in transition towards net zero.

Alexander Wood, CEO of SRJ, said: “SRJ’s vision is to become a global leader in asset integrity solutions for the energy industry, and this transaction will add value, differentiation and scale to SRJ.

“It will drive long-term growth with meaningful revenue synergy opportunities whilst delivering a highly responsive, solutions-led service to our clients.”

Mr Howarth will join SRJ’s board while continuing as CEO of STATS. Pete Duguid, chairman and founder of STATS, will remain with the business providing strategic direction, particularly in relation to key business development activities in North America.

The private equity investor, Business Growth Fund, which has supported STATS since 2012, will realise its investment and exit the business.