In an effort to expand its service presence in the oil and natural gas industry, Atlanta-based GE Power Systems said Wednesday that it has signed a definitive agreement to acquire PII Group Ltd., formerly Pipeline Integrity International, from HgCapital. United Kingdom-based PII offers global pipeline in-line inspections and integrity management services for the oil and gas industry. Financial terms of the deal were not disclosed.

Headquartered in Cramlington, Newcastle, PII uses in-line inspection tools to gather and assess data to determine the condition of a pipeline. Once the data is pooled, it is used to optimize pipeline utilization, maintenance and repair service.

“This is an extremely important step in building a broader and stronger platform to better serve our global oil and gas customers,” said John Rice, CEO of GE Power Systems. The company said the acquisition is part of its ongoing plan to offer fully integrated solutions focusing on customers’ asset optimization and technology needs.

HgCapital acquired PII from British Gas in 1998. After the transaction, PII expanded its position in the pipeline integrity business by making a number of strategic acquisitions. PII now operates in over 45 countries worldwide with an annual revenue base of over $170 million. “PII has been an excellent investment for us,” said Frances Jacob, managing director of HgCapital. “GE Power Systems is the perfect fit for PII and will ensure that the business maintains its leading market position.”

PII CEO Tony Powell, said, “GE Power Systems is the perfect new parent for PII and we are looking forward to the next stage of our company’s development under GE’s ownership. Our customers are always our number one priority and this new partnership will provide our customers with a continued focus on quality and a wider portfolio of services and technology.”

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