Scottish oil services firm International Tubular Services was dramatically bought out of administration after Texas-based Parker Drilling paid £82 million to take on the troubled company.
The firm’s global workforce of around 1,000, including around 70 employees in the Aberdeen area, was said to have been saved following the deal.
It came swiftly after Bruce Cartwright, Graham Frost and Ian Green of PwC had been appointed as administrators of parent company ITS Tubular Services (Holdings).
The professional services firm said ITS which focused on renting drilling equipment to “an extensive customer base of exploration and production companies, drilling contractors and service companies from 22 bases in locations as far afield as China to Columbia and Kazakhstan to the United Arab Emirates” had suffered a “cash strain” as it moved into new regions.
“The last few months have seen an intensive period of activity as we worked with the board of ITS to explore the options available to them,” Mr Cartwright said.
“After much deliberating, the directors took the decision for the group parent company to enter into administration with the aim of implementing the sale of the business as a going concern.
“The sale means the business now forms part of a truly global player with the financial capability to invest in its future growth a move that will positively impact the trading subsidiaries, their employees, customers and suppliers that Parker has acquired.”
Latest accounts show loans and overdrafts amounting to £113m at the end of 2011.
Parker an international drilling contractor, drilling services and rental tools supplier to the energy industry and project manager said ITS had a broad footprint and strong portfolio of products and services.
Joe Chandler, previously chief executive of ITS Tubular Services (Holdings) and now vice-president of Parker’s international rental tools business unit, said the move created an “exciting combination”.
“With the support of Parker, ITS is now in a better condition to provide the best solutions for our customers,” he said.
The deal comes just months after ITS founder Bob Kidd quit as chairman following disagreements with fellow bosses. That prompted legal action, as Mr Kidd attempted to regain control.
Despite being the majority shareholder, it is understood contractual restrictions meant Mr Kidd could not take control of the firm and went to the Court of Session in Edinburgh in an attempt to have the conditions lifted.
It is unclear what impact yesterday’s sale will have on those proceedings. Mr Kidd could not be contacted for comment.
Recent accounts for ITS’ parent company show widening losses despite a rise in turnover. ITS Tubular Services (Holdings) had annual turnover of £107 million in 2011, a 21% rise on the previous 12 months.
While operating profits more than doubled to £9.5m, pre-tax losses stretched to £4.4m from £4.3m.