OREANDA-NEWS. June 21, 2010. Integra receives a firm offer from United Capital Partners and agrees in principal on the sale of heavy rig manufacturing business in Yekaterinburg

Integra Group (LSE:INTE), a leading independent provider of onshore oilfield services and manufacturer of oilfield services equipment, announces receiving a firm offer and reaching a principal agreement with  United Capital Partners (UCP), a private equity and asset management Group,  on the sale of  Integra’s heavy drilling rig manufacturing business in Yekaterinburg for USD 40 million plus certain adjustment payments.

The deal will include the sale of a 100% stake in ZAO URBO (Yekaterinburg) by Integra to UCP. The transaction is subject to final documentation and other conditions precedent, including the receipt of corporate and regulatory approvals. The sale proceeds will be used to fund the operations of the ongoing core oilfield services businesses of Integra.

The transaction reflects Integra's ongoing strategy to reposition its portfolio of businesses away from heavy equipment manufacturing in order to increasingly focus on services and select manufacturing of higher technology products.  Following the sale of URBO, Integra will retain facilities and infrastructure used in the manufacturing of cementing fleets and the service and repair of oilfield equipment. 

Antonio Campo, Chief Executive Officer of Integra said:

“We are extremely pleased to announce our principal agreement on the sale of URBO.  This transaction is an integral part of our ongoing strategic repositioning and will result in better focus and more financial flexibility for Integra going forward.  We look forward to a continuing relationship with URBO and its new shareholders as a supplier to them of spare parts, rig components and aftermarket maintenance services.”

Ilya Sherbovich, President and Managing Partner of UCP said:

"Integra has built a good manufacturing platform in Yekaterinburg.  We are confident that this purchase will offer UCP the opportunity to continue to grow this business and maximize its value whilst preserving innovations, customer relationships and jobs to the greatest extent possible. ”