21st Feb 2020 08:48
(Alliance News) - Energy services group Hunting PLC on Friday said it has acquired subsea production technology developer Aberdeen, Scotland-based Enpro Subsea Ltd for up to USD36 million.
The acquisition was satisfied with a cash payment of USD33 million funded from Hunting's existing cash resources. Enpro will also be paid a maximum earn-out of USD3 million based on its earnings performance in 2020.
For 2019, Enpro reported revenue of USD14.1 million and earnings before interest, tax, depreciation and amortisation of USD3.4 million.
Hunting noted that Enpro's business model is focused on technology and product development, with all manufacturing outsourced to third parties. The company said that it intends to bring much of the manufacturing in-house and utilise its existing global manufacturing platform to further commercialise the technology across all of its key regional operating hubs.
"The acquisition of Enpro further strengthens Hunting's subsea offering and adds a high-technology product group to our portfolio. The offshore market continues to strengthen and we look forward to providing a wider technology offering to our customers who continue to seek lower cost, enhanced production and more efficient solutions to the production of oil and gas," said Hunting Chief Executive Jim Johnson.
Hunting is scheduled to publish its 2019 results on February 27.
The stock was untraded on Friday morning in London, last quoted at 314.80 pence each.
By Ife Taiwo; [email protected]
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