A Jersey business is set to become a major 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) Limited. The proposed purchase comes just 15 months after SRJ successfully listed on the Australian Securities Exchange (ASX).
SRJ Technologies, provides specialist engineering services with a range of weld-free containment management solutions, for pipeline repairs and maintenance. As a Jersey based start-up, most of its initial investors are from the Island.
The acquisition will amount to a significant leap in the scale of the company’s activities. It will also enable SRJ to capitalise on the global shift to green energy as the industry transitions.
CEO 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 AUD142million (£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 they can capitalise on STATS’s existing global client relationships and office locations, including blue chip clients in North America, Europe, Middle East and Asia Pacific. With the energy industry under intense pressure, suppliers are increasingly needing 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.
Alex Wood will remain as CEO of the company, with Leigh Howarth, CEO STATS, joining the SRJ Board as an Executive Director. SRJ will benefit from the highly experienced and skilled team at STATS, which will result in a global staff head count of around 400.
The combined companies will own a significant intellectual property portfolio, which includes 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.