Stanley Black & Decker offloads welding unit to Pipeline Technique

Stanley Black & Decker has secured an acquisition agreement to sell its pipeline welding equipment unit to Pipeline Technique (PTL), an infrastructure fabrication and construction specialist based in the UK, the latter company announced June 28.

The acquisition is aimed at forming a "global powerhouse" for oil and gas pipe construction materials, with revenues projected to come in above $200mn. PTL's existing 350-person workforce will be merged with inbound team members from Stanley Black & Decker, forming a division with more than 1,000 employees. Stanley Black & Decker is perhaps one of the best known diversified industrial equipment suppliers globally. It naturally offers many pipe welding products, including various fasteners, hydraulic systems and auxiliary services.

PTL is backed by the deep pockets of international private equity firm Bluewater, whose deal making remit focuses solely on middle-market energy sector opportunities. It was founded in 1999 and now claims to have capacity for fabrication and construction projects, using "proven" and "non-destructive" welding technologies.

With Bluewater's support, PTL is now ramping up its M&A activity to grow its welding services capacity across its target sectors both in the UK and globally. The Stanley Black & Decker deal is the second PTL has secured in recent months, following the takeover of Scotland-based Global Project Services in April 2022.

The aim is for PTL to service welding across "every part" of the energy mix, reaching right across the wider infrastructure sector but also drilling down to specialised welding contracts in oil and gas, renewable energy and carbon capture.

Stanley Black & Decker's oil and gas division generated around $140mn of revenue last year.  The subsidiary encompasses three distinct businesses: Stanley Inspection, PTL Induction Heat and CRC-Evans.

Martin Somerville, managing director of Bluewater, said: "Having delivered exceptional growth at PTL in the last couple of years, we are delighted to back Frederic and his team in this transformational acquisition of Stanley Oil & Gas.

"This represents another substantial corporate carve-out deal for Bluewater, and we are extremely excited by the growth potential for the combined group."

Frederic Castrec, CEO of PTL Technique, added: "This deal is a major step forward on our journey of diversification and global growth, and the timing of this acquisition could not be better as the sector undergoes significant change. We will invest in the businesses to deliver rapid growth and help realise our enormous potential.”