A growing North East business that provides a range of services for the oil, gas, marine and rail industries has been acquired by an international energy services company.
Pyeroy Group Limited, which employs around 1,800 people at eight locations throughout the UK and Ireland, is now part of the Wood Group, which operates worldwide.
The acquisition will allow Wood Group’s PSN’s division to extend its existing range of offshore brownfield engineering, construction, operations, maintenance and decommissioning services.
Pyeroy, however, will continue to be led by its current managing director Hugh Pelham.
“The fit is ideal, strategically,” Pelham said.
“We have room for growth in the oil and gas sector and we also have the skills and experience to complement Wood Group PSN’s oil & gas capability.
“We believe that joining Wood Group will enable us to offer broader services to our customers.”
Set up in 1973, Pyeroy, which has its headquarters in Gateshead, produces specialist coatings, access and fabric maintenance services for the oil, gas, marine and rail industries.
By 1994, it had grown to a business generating sales of over ï¿½8m per annum, leading the man behind the company, Bob Thompson, to appoint a manager director.
In 2012, the company’s pre-tax earnings was £88.9m, while this year its continued growth allowed it to open an office in Aberdeen to support its renewables, offshore infrastructure and oil and gas activities.
The numerous high-profile jobs it has worked on include the refurbishment of the Forth Rail Bridge, the re-fit of HMS Illustrious, in Rosyth Dockyard, and applying protective coating to several units on HMS Prince of Wales.
In joining Wood Group PSN, it has become part a global provider of services for the energy industry, including pre-operations, hook-up, commissioning, operations, maintenance and construction.
Employing more than 29,000 people in more than 40 countries, Wood Group PSN says it aims to offer high-integrity brownfield services that support customers to optimise performance, maintain production and reduce operating costs.
Chief executive of Wood Group PSN Robin Watson said: “Pyeroy has an excellent track record of supporting the operational needs of major oil and gas, marine, and rail customers, and has a high-quality, highly-trained workforce.
“The acquisition of Pyeroy marks a strategic move into specialist coatings, access services and fabric maintenance which broadens our service offering to oil and gas customers.
“These services are particularly relevant for extending the life of existing infrastructure, and for decommissioning projects.
“As an example, Pyeroy’s expertise on the Forth Rail Bridge refurbishment can be transferred into the oil and gas sector.”
Wood Group PSN is one of three businesses under the Wood Group banner, the others being Wood Group Engineering and Wood Group GTS.
The group employs around 43,000 people worldwide and has reported $7 billion in sales.