Proserv has agreed a sale of its drilling services business (TIC) to pressure control systems specialist C-Automation.
The divested business will now trade as C-Automation Services.
Scott Shugart , president, Drilling Controls at Proserv, 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.”
As a part of the sale agreement, Proserv and C-Automation will work in partnership to provide their customers with shared products and services. Proserv will supply its drilling controls products, including its Gilmore branded valves and field-testing equipment, while C-Automation will provide welding, electrical, piping, flushing and tubing services. As a result of the acquisition, C-Automation will more than double its staff of service technicians and significantly broaden the customer base that it serves.
Mike Gould, CEO of C-Automation, stated: “ Purchasing this drilling services business from Proserv is a critical component of our longer-term global growth strategy. We have consistently prided ourselves on our custom manufacturing and field service capabilities, and this acquisition provides us a unique opportunity to accelerate entry into new markets and strengthen our capacity to serve our customers’ complex drilling needs. ”
Davis Larssen, chief strategy officer for Proserv, commented: “ We have been in the process of reviewing and adapting our development plan and we are committed to focusing exclusively on our core controls technology as we move forwards. Our products and services in the drilling market remain a strong proposition. But as we conclude this divestment, we wish the team at C-Automation well for the future. ”
Both parties have agreed to keep the financial terms of the deal undisclosed.