Proserv sells drilling services business to C-Automation
The company said that its drilling services unit "no longer complemented Proserv's core offering"
Controls technology company Proserv sold its worldwide drilling services business to C-Automation. The divested business will now trade as C-Automation Services.
“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," said Scott Shugart, president, Drilling Controls at Proserv. "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.
“Purchasing this drilling services business from Proserv is a critical component of our longer-term global growth strategy," said Mike Gould, CEO of C-Automation. "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.”
This is the latest of several divestments and acquisitions by Proserv, including the sale of its precision engineering company KRG Industries to GIL Investments.
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.