The purchase is conditional upon acceptance by 90% of Reeves shareholders.
In a statement 3i Midlands Director Richard Bishop said, “Our investment in Reeves Oilfield Services has been a tremendous success. The management team and employees at the company have achieved a truly impressive performance over the last nine years, by using their skill and expertise to develop a successful global company in a highly competitive market.
“It is satisfying to have seen Reeves grow into a company that is attractive to a high profile international buyer like Precision Drilling and we wish the company every success for the future.”
3i, who routinely invests in a wide range of opportunities from start-ups to buy-outs and buy-ins, had originally backed the MBO of Reeves from BPB Plc in 1995 for around US$16 million and has invested heavily in new technology. The result is a company which has a turnover of US$70.7 million.
Precision, which is one of Canada’s largest oilfield services companies, is to acquire 100% of Reeves.
