The Board of Directors of Medserv plc have announced that the Company has entered into a conditional share purchase agreement for the acquisition of METS Group, a group of companies based in the Middle East, for the sum of US$46 million.

The METS Group provides and operates a comprehensive threading, repair, inspection and storage service for oil country tubular goods (OCTG). It maintains three sites in Sharjah, Oman and in Basra, Iraq. The METS Group are in possession of both API® and VAM® certifications, which are certifications designed for the more technically demanding thread connections required by today’s high pressure, high temperature wells.

This acquisition presents an opportunity for the Medserv Group to increase its scope of services to customers and to enter the well-established Middle Eastern oil and gas service industry in a region where extraction costs are comparatively low.

“This acquisition fits with our longer-term strategy of increasing our geographical spread and product spread. It will also allow us to continue to grow our customer portfolio of international oil and gas companies and subcontractors.” said Mr Anthony Diacono, Chairman at Medserv plc. “The acquisition will also present Medserv with cross selling opportunities. We will be looking at selling our services within the Middle East region as well as introducing and marketing the METS’ services to markets currently serviced by Medserv, primarily North Africa and the Eastern Mediterranean rim countries.” Similar to Medserv, METS operates in growth countries.

Services between METS and Medserv do intersect but whereas Medserv concentrates on the offshore oil and gas industry, METS tends to support the onshore oil and gas industry. Synergies are expected to be achieved by combining the two groups.

Medserv has registered a subsidiary company with the name Medserv M.E. Limited for the purpose of acquiring and holding the issued share capital of the METS Group.