A JERSEY business is poised to become a key global player in the repair, replacement and repurposing of oil, gas and petrochemical pipe networks.
SRJ Technologies has made a significant share-purchase agreement to acquire a market leader in the provision of innovative, technology-led pressurised pipeline integrity solutions, STATS (UK) Ltd.
The proposed purchase comes 15 months after SRJ successfully listed on the Australian Securities Exchange.
A Jersey-based start-up, whose initial investors are predominantly from the Island, SRJ Technologies provides specialist engineering services with a range of weld-free containment management solutions for pipeline repairs and maintenance.
The acquisition will enable SRJ to scale up its activities while capitalising on the global shift to green energy as the industry transitions.
Chief executive Alex Wood said: ‘The proposed purchase of STATS significantly enhances our offering.
‘I’m delighted that we are able to repay the faith of our early Jersey investors and take them with us as we take a big leap forward in achieving our vision to be a global leader in asset integrity solutions for the energy industry.
‘This is going to add value, differentiation and scale to SRJ, enabling us to drive long-term growth and revenue opportunities.’
SRJ will seek an equity raising of AU$142million (£77.6million) to fund the £67.2million cash element of the purchase price, (£73.1 in total with shares) and to provide working capital.
The purchase will broaden SRJ’s offering and allow it to capitalise on STATS’s existing global client relationships and office locations, including blue chip clients in North America, Europe, Middle East and Asia Pacific, a move which Mr Wood says is significant as suppliers in the energy industry are under pressure to find innovative solutions to repair, replace and repurpose infrastructure to prevent costly leaks, avoid damage to the environment and move to renewable energy sources.
Mr Wood will remain as chief executive of the company, while Leigh Howarth, the chief executive of STATS, will join the SRJ board as an executive director.
The combined companies will have a global headcount of around 400 employees and own an intellectual property portfolio including 126 patents in more than 20 countries, and a further 13 patents pending.
Shareholder approval will now be sought for the purchase, with an extraordinary general meeting to be called in January. In line with ASX regulations, SRJ securities are currently suspended pending this approval.
