19th Mar 2008 07:02
Smiths Group PLC19 March 2008 Smiths buys Texan oilfield equipment company SMITHS Group, the global technology business, today announces the acquisition ofFiberod (Fiber Composite Company Inc.) a Texas-based specialist in oil and gaslifting equipment. The acquisition is subject to regulatory approvals. Financialdetails of the purchase, from private owners, were not disclosed. Fiberod complements the CDI oilfield products and services business bought bySmiths Group's John Crane business less than a year ago. Both Fiberod and CDIextend the reliability of artificial lift systems which can pump oil from depthsof more than 10,000 feet. Fiberod is a world-leading manufacturer of fibre-glass sucker rods. These are alight-weight alternative to the traditional steel rods used for the artificiallift of oil and gas from the reservoir. In calendar year 2007, it reported salesof £12 million ($25 million). Paul Cox, Group Managing Director of Smiths Specialty Engineering, said: "Thereare some 850,000 wells around the world and many of these require oil and gasreserves to be brought to the surface using artificial lift. Fiberod and CDIoperate in a £700m per annum market and, since we acquired it, CDI hassuccessfully used the John Crane worldwide network to penetrate new territories.Fiberod already supplies CDI with rods and this deal clears the way for evencloser cooperation as we build a global upstream oilfield services business." Employing some 150 people, Fiberod manufactures at Big Spring, near Midland,Texas. Assembly is carried out in Big Spring and at nearby Ojinaga, Mexico.Fiberod is near completion of a new manufacturing facility in Midland, Texas. ENDS Investor Relations MediaPeter Durman Chris Fox+44 (0)20 8457 8203 +44 (0)20 8457 8403 Smiths Specialty EngineeringSmiths Specialty Engineering is part of Smiths Group, a global technologybusiness listed on the London Stock Exchange. It serves the internationalenergy, communications and industrial markets: John Crane designs andmanufactures seals and associated products and provides services mainly for theoil & gas, chemical, pharmaceutical, pulp & paper and mining sectors; SmithsInterconnect designs and manufactures specialised electronic products andsystems for the wireless telecommunications, aerospace, defence, space andmedical markets; Flex-Tek designs and manufactures engineered components whichheat and move fluids for aerospace, domestic appliances, and medical devices.Smiths Specialty Engineering employs 10,800 people. For further informationvisit www.smiths-specialtyengineering.com Smiths GroupSmiths is a global technology company listed on the London Stock Exchange. Aworld leader in the practical application of advanced technologies, Smiths Groupdelivers products and services for the threat & contraband detection, medicaldevices, energy and communications markets worldwide. Our products and servicesmake the world safer, healthier and more productive. Smiths Group employs morethan 20,000 people in over 50 countries. For more information visitwww.smiths.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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