24th Jun 2025 10:10
(Alliance News) - Hunting PLC on Tuesday said it has completed the acquisition of Flexible Engineered Solutions (Group) Holdings Ltd, as the firm noted that it is reviewing its capital allocation policy.
The London-based supplier to the oil and gas industry said it has completed the acquisition of Flexible Engineered Solutions for a GBP50 million total consideration, subject to post-completion adjustments.
Flexible Engineered Solutions is a Northumberland, England-based provider of fluid transfer solutions to the offshore oil and gas and renewable energy industries.
Hunting said the transaction enhances its growing offshore and subsea revenue profile, and boosts the company's product coverage across both deepwater and ultra deepwater markets.
Flexible Engineered Solutions booked earnings before interest, tax, depreciation and amortisation of GBP6.2 million in 2024 on GBP31.3 million in revenue.
Hunting said Flexible Engineered Solutions' sales book at completion stood at GBP11.8 million with "a robust tender pipeline and bid opportunities extending in excess of GBP100 million".
Shares in Hunting were trading down 2.1% at 258.91 pence on Tuesday morning in London.
Hunting said the acquisition supports the growth strategy it outlined back in September 2023 at its capital markets day, at which the company discussed its push into the subsea equipment sub-sector of the energy industry.
The purchase was funded through its existing cash resources. Flexible Engineered Solutions' senior management team have agreed to remain with Hunting for a minimum of a year.
Following the acquisition, Hunting said it is reviewing its capital allocation policy, as the company is highly cash generative.
Hunting Chief Executive Jim Johnson said: "We are pleased to complete the acquisition of FES. It immediately boosts our subsea portfolio with proprietary products and capabilities and clearly demonstrates progress on our 'Hunting 2030 strategy'.
"FES's fluid transfer solutions perfectly complement our existing subsea and [floating production, storage and offloading platform]-related lines, creating strong product bundling and cross-selling opportunities with our existing subsea businesses as well as the potential for further international growth.
"FES's blue-chip customer base, international profile and high margin, mission critical applications make the business an ideal fit for Hunting."
By Christopher Ward, Alliance News reporter
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