Proserv completes sale of drilling arm to US firm amid portfolio restructure

● Latest offload adds to Aberdeen-based group’s string of sales and purchase deals

Aberdeen-headquartered technology company Proserv has continued its busy pipeline of sales and acquisitions activity with the disposal of its drilling services arm to a US group.

Proserv, which provides equipment and controls technology to the oil and gas sector, has sold its drilling business TIC to pressure control systems specialist C-automation, based in Texas.

The divested business, currently housed at Proserv’s Gilmore facility in Coatbridge, will now trade as C-automation Services.

As a part of the agreement, the two companies will work in partnership to offer shared products and services.

Proserv will supply drilling controls products, including Gilmore-branded valves and field-testing equipment, while C-automation will provide welding, electrical, piping, flushing and tubing services.

Further details of the sale were not disclosed.

The latest disposal follows a busy spell of portfolio activity for the Aberdeen-based firm, as it continues to shift focus to its core controls technology after a recent strategic review.

It comes hot on the heels of two deals announced last month,whenthegroupagreed to sell its speciality machining division KRG Industries just days after unveiling it had acquired flow computer metering specialist SGC Metering, also based in Coatbridge, from Petrofac. Scott Shugart, Proserv’s president of drilling controls, said: “Following a strategic review of our portfolio, providing manpower to our customers to perform welding, electrical, piping and tubing services no longer complemented Proserv’s core offering, so a sale process was activated last year and it has resulted in this successful announcement today.

“Proserv remains firmly committed to the drilling market and is actively working on new products to support our customers.”

The group employs around 1,200 staff in 18 offices and is currently operating in more than 60 countries. As a result of the acquisition, Houstonheadquartered C-automation will more than double its head count of service technicians and “significantly broaden” its current customer base.

Chief executive Mike Gould added: “Purchasing this drilling services business from Proserv is a critical component of our longer-term global growth strategy.

“This acquisition provides us with a unique opportunity to accelerate entry into new markets and strengthen our capacity to serve our customers’ complex drilling needs.”