Superior Energy Services acquires offshore accommodation provider Duffy & McGovernNews // January 24, 2007
Craig McLeish (left) and Maurice Bledsoe.
Leading offshore accommodation provider Duffy & McGovern Accommodation Services has been acquired by US oilfield services firm Superior Energy Services Inc.
The US$47 million deal sees Superior Energy Services continue its international expansion and complement its existing accommodation subsidiary HB Rentals, which is headquartered in Broussard, Louisiana and provides accommodation and accessories to oil and gas companies in Oklahoma, Texas, the Rocky Mountains, Gulf of Mexico and Trinidad.
As a result of the deal Duffy & McGovern, which is headquartered in Aberdeen, Scotland and whose staff and management team will all remain in position, will be investing some US$15 million with immediate effect to accelerate its fleet growth.
The company will be building 100 new offshore accommodation modules over the next six months and is stepping up its presence in the South East Asia market in particular.
Recognizing the strength and reputation of the Duffy & McGovern service, Superior intends to retain the name and independence of the company, except in the US, where the company will now operate under the name of HB Rentals, which has a dominant market position in the provision of accommodation to land-based and offshore projects and has more than 1,000 units in its fleet.
Terence Hall, Superior Energy Services’ chairman and chief executive officer said: “This acquisition gives us immediate exposure to new rental markets around the world and further broadens our international reach. We will use capital, our experience in the accommodation business and our diverse service offering to help Duffy & McGovern, which already has well established global operations and relationships, to realize its growth potential and extend our own reach for other rental products and intervention services.”
Duffy & McGovern employs 30 people in Aberdeen and eight in the US and South East Asia. Established in 1999 in Aberdeen, the company set up a US operation in New Orleans in 2002 and in Singapore in 2005.
With more than 250 modules, the firm now operates the world’s largest fleet of rental offshore accommodation cabins and provides global solutions for customers which include Shell, BP, Statoil, Talisman, Schlumberger and Baker Hughes. The company has an annual turnover of US$17.8million.
Prior to the acquisition Duffy & McGovern was fully owned by Loftbridge Holdings Limited. President of HB Rentals, Maurice Bledsoe, said: “This is a very exciting development for HB Rentals and will give us the international capabilities that will truly set us apart from our competition. Duffy & McGovern’s expertise and track record in coastguard-approved accommodations and in deep-water offshore locations perfectly complements our strength in onshore and fixed platform offshore accommodation.”
Managing director for Duffy & McGovern, Craig McLeish, said: “Today’s announcement is excellent news for Duffy & McGovern customers and staff. Superior Energy Services has significant experience and resources, and customers are not only assured of the same quality of service but greater choice and availability. The immediate investment in new rental modules is testament to the commitment and vision Superior has for growing the company.”
This is Superior’s second acquisition in the UK. It acquired Premier Oilfield Rental in 2003.