Wood Group expands US shale portfolio with new acquisition

 
Suzie Neuwirth
FTSE 250-listed energy services provider Wood Group yesterday said it has agreed to buy Elkhorn, a construction service provider for the US shale market.

No deal value was given, but Wyoming-based Elkhorn generated sales of around $250m (£156.5m) in 2012 and employs around 2,200 staff. The firm, which provides infrastructure-related services to shale oil and gas companies, will continue to be led by its existing management team under chief executive Sean Sullivan.

“The acquisition of Elkhorn is an important part of our US shale strategy and will expand our service portfolio for our US onshore customers,” said Robin Watson, chief executive of Wood Group, in a statement.

The discovery of large reserves of shale gas in the US has boosted its economy and drastically reduced its dependance on imports.