Hunting boosts subsea offering by buying UK player
- Business & Finance
British supplier to the oil and gas industry Hunting has completed the acquisition of Aberdeen-based oil and gas production optimization specialist Enpro Subsea.
Hunting said on Friday that Enpro was acquired for a total consideration of $33 million payable on completion, plus a potential maximum earn-out of $3 million based on EBITDA performance in 2020.
The consideration payable is on a cash-free-debt-free basis and payable in cash and has been funded from Hunting’s existing cash resources.
Hunting added that Enpro was being acquired from members of the Enpro management team and Energy Ventures Private Equity.
Enpro’s products focus on delivering production enhancing technologies and include flow access modules, flow intervention services, and decommissioning.
The flow access module technology supports the use of standard subsea SPS hardware leading to shorter development timescales and quicker production of hydrocarbons.
Enpro’s head office is in Aberdeen, UK, with subsidiaries in Ghana, Norway, and the U.S. The business currently has a headcount of 40 personnel and it is anticipated that the senior management team will continue with Hunting. The company will continue to trade under the “Enpro Subsea” brand.
Based on UK GAAP, in the year ended December 31, 2019, Enpro generated revenue of $14.1 million and EBITDA of $3.4 million. At the end of last year, Enpro had net assets of approximately $9.4 million, gross assets of $14.5 million and an order book of approximately $11 million.
Jim Johnson, chief executive of Hunting, said: “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.”
Ian Donald, CEO of Enpro, added: “Enpro’s technology offering has been utilized by major operators in key offshore development basins across the world.
“In joining the Hunting group we look forward to utilizing its global operating platform to develop new customers and sales and to capitalize on this growing market segment.”
This is the second company acquisition by Hunting in the past six months. Namely, Hunting completed the acquisition of the business and assets of RTI Energy Systems for in August 2019.
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