3i sells second oil and gas company in a week

Specialised Petroleum Services, a Scottish oil and gas services company, is 3i’s second disposal in the sector this week, fetching $165m in a sale to M-I Swaco, a US-based drilling and waste management business.

3i, a global private equity firm, has exited its second oil and gas company this week with the sale of Specialised Petroleum Services, a Scottish provider of wellbore clean-up products and services to the oil and gas industry. 
 
M-I Swaco, a US headquartered global supplier of drilling and waste management services for the oil and gas sector, has bought Specialised Petroleum Services from 3i, the company’s founders and minority shareholders for $165 million (€128 million).
 
Earlier this week, 3i sold CH4 Energy, a UK energy and power company, to Venture Productions, a listed oil and gas producer, for €224 million. The sale generated a 7.3 times multiple and an IRR of 105 percent.
 
3i acquired a 51 percent stake in Specialised Petroleum Services for an undisclosed sum in 1999 before merging the business with AFOS, an Aberdeen-based oilfield services group.
 
According to media reports, 3i netted approximately £45 million from the sale, while Specialised Petroleum Services founder Mark Carmichael cashed in his 20 percent stake in the business for approximately £18 million.
 
A further acquisition, Global Completion Services, was made in 2001. Global Competition Services founder Billy Brown is reported to have made £7.1 million from the sale of his eight percent stake in Specialised Petroleum Services.