Wood Group has agreed to acquire Elkhorn HoldingsInc. ("Elkhorn"), a Wyoming-based provider of construction services formidstream oil & gas facilities in the US shale market.
Elkhorn provides infrastructure-related services such as pipeline and facilitymaintenance, instrumentation and electrical, civil and mechanical construction,and fabrication to oil & gas and petrochemical companies. Elkhorn, whichgenerated sales of approximately $250 million in 2012, is headquartered inEvanston, Wyoming, and has approximately 2,200 personnel. Elkhorn operates from11 locations across the Niobrara, Permian, Marcellus and Utica shale regions.Elkhorn will operate within Wood Group PSN and further develops Wood Group's USshale business.
Elkhorn will continue to be led by its existing management teamunder CEO Sean Sullivan.
The transaction is subject to a number of conditions, including anti-trustapproval in the US, and completion is expected in late 2013.
Robin Watson, chief executive of Wood Group PSN, said: "The acquisition ofElkhorn is an important part of our US shale strategy and will expand ourservice portfolio for our US onshore customers. Elkhorn's services andgeographic presence are complementary to Wood Group PSN's existing shalebusiness. Following the acquisition of Elkhorn, Wood Group PSN will have around4,500 US shale-focused personnel.
"We have been greatly impressed by Elkhorn's management team. Each member ofthe team shares the same core values as Wood Group."
Sean Sullivan, CEO of Elkhorn, said: "We are extremely excited to be joiningWood Group. This combination will greatly benefit Elkhorn's customers andemployees given our collective breadth of service offerings. Elkhorn hasachieved good growth over recent years, and we anticipate that in strongmarkets and with Wood Group's support we will see this continue."
