Global oil services company Archer has acquired Aberdeenshire-based decommissioning business Romar-Abrado for an enterprise value of $8m, plus earn-out pending trading performance to 2025.
Romar-Abrado specialises in advanced milling and hazardous waste handling services to the plug and abandonment (P&A) market. The company employs 50 people with revenue of approximately $10m in 2021.
Dag Skindlo, chief executive of Archer, commented: “The acquisition is another value creating investment which expands our capabilities within workover operations and well abandonment.
“Romar-Abrado fits well with our strategy for brownfield and P&A - we expect activity to increase within these markets going forward as fundamentals and outlook remain strong. In addition, the transaction will contribute to the acceleration of our international expansion within the well services segment.”
Nicholas Pantin, vie president of Archer Oiltools, explained: “Our services have been developed around steel retrieval and steel recovery, as well as establishing barriers through plugs and annular remediation, so technologies around steel removal through milling and section milling will allow Archer to offer end to end solutions.
“The acquisition of Romar-Abrado gives us a significant leap forward and will contribute to future developments.”
Jason Broussard, chief executive of Romar-Abrado, added: “We are happy to join forces with Archer to further develop and broaden our products and services in Romar-Abrado.
“Archer is a great fit for the Romar-Abrado business with their global footprint and service offering within workover and abandonment.”
Formed in 2011, Archer combined two well specialist companies, Seawell and Allis-Chalmers Energy, along with several complementary businesses delivering wells and improving well performance.
Romar-Abrado is split between its headquarters in Ellon and another base in Broussard, Louisiana. It is an amalgamation of ROMAR International and Abrado Wellbore Services.
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