MISTRAS Group, Inc., a leading ‘one source’ global provider of technology-enabled asset protection solutions used to maximise the uptime and safety of critical energy, industrial, and public infrastructure, has announced that it had acquired 100% of the stock of Onstream Pipeline Inspection Services, Inc., a leading North American provider of proprietary technology enabling pipeline inspection and data analytics services primarily to the gathering and mid-stream market. The preliminary purchase price for Onstream, acquired from Novacap and affiliates, a Canadian private equity firm, and other shareholders, was approximately US$143 million. In connection with the acquisition of Onstream, the Company upsized its existing credit facility to US$400 million for a new five year period. The Company also updated its full year 2018 guidance of estimated consolidated revenues to US$740 million, an increase of US$10 million over the high end of the Company’s most recent outlook and exclusive of the impact from Onstream.
Dennis Bertolotti, Chief Executive Officer stated, “The acquisition of Onstream is an ideal opportunity to diversify our business. It will enable us to leverage our strength in the midstream market and accelerate our growth by accomplishing our strategic initiative to add a pipeline integrity pillar to our service portfolio. Onstream is recognised as a leading company in the small- to mid-bore pipeline inspection market in North America and it has been growing at better than 20% annually over the past five years, while maintaining an extremely attractive margin profile. Onstream is also a technological innovator, with a growing proportion of its revenues derived from new markets and services.”
About Onstream Pipeline Inspection
Onstream is a leading provider of proprietary, technology-enabled inline inspection and data analytics services, and is a leading provider of inline inspection services in the ‘unpiggable’ segment of the small to mid-bore North American gathering and midstream pipeline market. The recently commercialised 16 in. combination tool fleet marks the next stage in Onstream’s expansion into the large diameter midstream market of pipelines up to 20 in. Onstream is able to produce actionable reports in approximately 20 days, compared to the 60 to 90 day industry norm. Onstream is also very proud of its culture of customer centricity and record for being able to responsively service customers whenever a pipeline inspection is necessary.
Onstream offers combination inspection tools with high-resolution sensors in both free swimming and tethered configurations to identify and record all pertinent pipeline data including hardware, girth welds, bends, metal loss defects and pipeline specific geometry features. Its bi-directional combination tether tool provides an inline inspection option for pipelines previously deemed to be ‘unpiggable’ by traditional free swimming methods. Most importantly, Onstream consolidates all of the data it collects in its proprietary ‘Streamview’ software, where a dedicated team of expert data analysts utilise proprietary algorithms to analyse data and quickly provide highly insightful reports to customers.
Onstream will continue to be managed by its key executives, (Chad Niehaus, President and Chief Executive Officer, and Gerry Wilkinson, co-founder and Chief Technology Officer). On behalf of Onstream, Chad Niehaus said, “The entire Onstream team is very excited to become part of MISTRAS Group, which has earned a reputation for its superior customer service, something for which we share a deep passion. As part of MISTRAS, we will have significant opportunities to utilise our extensive mutual customer relationships to accelerate our rate of growth, especially in the US. While Onstream is not new to the pipeline inspection industry, it is fairly new to the US market. In addition, by incorporating MISTRAS’ world-class non-destructive testing (NDT) services and Advanced NDT technologies, we believe we will now be able to more quickly expand our existing service offering as well as develop and introduce new technologies that enhance our overall capabilities.”
Read the article online at: https://www.worldpipelines.com/business-news/11022019/mistras-group-acquisition-of-onstream-pipeline-inspection/
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