Singapore: AusGroup Acquires Subsea Pressure Controls
AusGroup Limited announced it has purchased assets and operations of Singapore-based Subsea Pressure Controls Pte Ltd as an addition to its Fabrication and Manufacturing business.
The initial purchase consideration of S$5.0 million will be made up of a combination of shares and cash, with an additional S$3.8 million “earn-out” being payable over the next few years bringing the maximum purchase price to S$8.8 million.
The privately owned company was formed in 2009 to provide manufacture, repair and rental services to the Oil and Gas industry across Asia.
The acquisition provides AusGroup with immediate value creation through combining both companies’ unique capabilities, while allowing AusGroup to grow its Singapore business through direct entry into the sub-sea repair, maintenance and upgrade market in the industry.
The addition of this service offering across the buoyant Asian Oil and Gas market comes at a time of high growth, which is anticipated to continue for the foreseeable future.
AusGroup CEO and Managing Director, Stuart Kenny, expressed his enthusiasm for the acquisition saying that this positive step is one which will strengthen the business.
“We are very pleased to announce our acquisition of Subsea Pressure Controls – it will bring considerable benefits to both organisations. I look forward to working with the Subsea Pressure Controls team and exploring opportunities to expand our service offering in this high growth and unique market.” Mr Kenny said.
Subsea Pressure Controls CEO, Neil Fentie, said he was looking forward to the growth in capability that the combined services will offer to the market.
“The coming together of Subsea Pressure Controls and AusGroup is a fantastic opportunity to grow the business quickly in this high profile emerging market. By utilising existing AusGroup assets and facilities we are able to deliver a service offering that is truly scalable”
This acquisition positions AusGroup to maximise the benefits of our existing operations and capitalise on the future opportunities, while allowing the Subsea Pressure Controls business to broaden its offering through utilising the facilities and services of AusGroup Singapore.
With immediate expected revenues it is anticipated that strong growth can be achieved in the new business and existing AusGroup Singapore Pte Ltd in the near future.
Subsea World News Staff , December 16, 2011; Image: Subsea Pressure Controls