EXOVA, the materials testing specialist which has been battling tough times in the key oil and gas market, has continued its acquisition programme with the takeover of a firm in England in what looks like a bolt on deal.
The Edinburgh-based company also announced it has sold an environmental testing business in Canada for around C$13 million (£7.5m) as it looks to focus resources on favoured markets.
Led by chief executive Ian El-Mokadem, Exova has bought Insight NDT for an undisclosed sum as part of the group’s plan to diversify its oil and gas and industrials division.
The South Yorkshire-based business provides non destructive testing and radiographic inspection services. It has clients in sectors such as oil and gas and rail. It had £2m turnover in 2015.
The acquisition signals that Exova sees long term potential in the oil and gas market in spite of the challenges it has faced amid the downturn in the industry since 2014.
Exova has seen cuts in spending on new oil and gas facilities in areas such as the North Sea hit demand for metal testing services.
It made no comment yesterday on the 15 per cent increase in the crude price since last Wednesday, when Opec members led by Saudi Arabia agreed to curb output to help support the market.
The recovery ran out of steam yesterday when Brent crude fell around $1 per barrel to $54.
Exova has made 14 acquisitions since January 2014.
The group sold its Environmental East business in Canada to the Eurofins life sciences company.
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