Energy services company Wood Group has completed the acquisition of US-based Duval, boosting its presence in the Eagle Ford Shale region of the USA.
The firm, based in Aberdeen, has not released details of the cost of the takeover. However, it is known that Duval had sales of $32m (£20m) in 2011, and is sitting on assets of $14m (£9m).
The fabrication and installation firm, based out of Houston in Texas, will now be run under the name of Wood Group Duval.
As the Eagle Ford Shale region is in an area rich in hydrocarbons, it is seen as one of the most profitable areas for shale gas in North America.
Extending over Texas across an area of 400 miles from the border with Mexico, the region is 50 miles wide. Estimations put oil reserves at three billion barrels in the region, delivering an output of anything up to 420,000 barrels every day.
The move also gives Wood Group a firmer foundation for continued American growth. Its Americas president said:
“The acquisition of Duval provides us with a robust platform for growth in the key Eagle Ford shale region and increases our overall exposure to the US onshore unconventional oil and gas markets.”
Other Scottish firms are also taking advantage of market conditions to acquire rival companies. With many being helped through invoice discounting and factoring to release funds, financial strategies are changing fast.
With their acquisition, the Wood Group now boasts more than 41,000 employees worldwide, and a presence in more than 50 territories.