When Aberdeen based Production Services Network’s management team bought the company from its oil giant parent Halliburton in April 2006, it was one of the biggest MBOs that the oil and gas sector – and indeed Scotland - had seen for some time.
Despite being a successful operation for more than 25 years as a Halliburton subsidiary, Production Services Network (PSN) did not fit well within the Halliburton empire, which was geared more towards large capital projects, and the management team was keen to strike out on its own.
"We had the opportunity to make an offer for the business and it became clear immediately that speed was of the essence," explains PSN’s CEO Bob Keiller. "We had to demonstrate that we had the financial credentials and backing to do the deal quickly.
"We presented to Bank of Scotland Corporate's Integrated Finance, which was a model that we felt would be very suitable, and within two days they gave us approval of their support. It was instrumental in enabling us to approach Halliburton with a formal offer letter. It was also extremely impressive and one of the factors that meant we stopped looking at the other financing options that we were considering at the time."
Keiller confirms that the deal is already reaping positive results for everyone: "Being independent gives us the opportunity to really focus on what we are trying to achieve. We're no longer a small part of a bigger team, so we can make decisions more quickly. We can now turn things round in hours rather than weeks.
He adds that enabling management to retain majority control of the business was also a compelling part of the Integrated Finance offering: "It’s been a fantastic genesis for the business because although we’ve been operating for over 25 years in one form or another, it’s always been as a small and undervalued part of a larger organisation. Now that we’re on our own, everything about the way we think about the business has transformed."
PSN has hired over 1,800 people since the MBO and Keiller is cautiously optimistic: "Like any business, we face pressures from the competition and challenges, and we know it's early days. But we have a broad customer base and good geographic coverage. We look forward to transforming a successful business into a major, international player in the industry."
If you'd like to find out more about how we can help grow your business visit the Integrated Finance page on the Bank of Scotland Corporate website.
