Acquisition

Thursday 23 September 2010

JAMES FISHER AND SONS PLC

Acquisition of RigCool

James Fisher and Sons plc today announces the purchase of RigCool Limited based in Aberdeen and its sister company RigCool Australia Pty Limited based in Perth Western Australia for a total consideration of £2.1 million in cash and the assumption of £2.0 million of outstanding debt.

The privately owned RigCool companies supply a full package of equipment and supporting manpower services to protect drilling rigs during well testing operations. The equipment which is rented out includes booster pumps, submersible pumps, high tech nozzles and piping tailored to suit each project.  

For the year to 31 May 2010 the companies reported combined turnover of £4.8 million, net profit before tax of £300,000 and had net assets of £1.2 million. After adjusting for items which are not expected to recur post acquisition the companies generated EBITDA of approximately £1.1 million in the same period.

Tim Harris, Chairman of James Fisher and Sons plc, said: 

"RigCool's business fits neatly with Scan Tech Air Supply which provides air compressors, steam generators and manpower services during well testing operations largely to the same clients. We plan to develop both activities in parallel and roll them out to other areas of the world. This acquisition also adds to our presence in the growing market in Western Australia." 

E C Hambro Rabben & Partners has acted as corporate adviser to James Fisher and Sons plc.

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