REG - Hunting PLC - Acquisition of Enpro Subsea Limited

HuntingAnnouncement

21/02/2020 07:00

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RNS Number : 6633D
Hunting PLC
21 February 2020
 
 For Immediate Release  21 February 2020
 
 
Hunting PLC
 
("Hunting" or "the Company" or "the Group")
 
Acquisition of Enpro Subsea Limited
 
Hunting PLC (LSE:HTG), the international energy services group, today
announces the completion of the acquisition of Enpro Subsea Limited ("Enpro")
for a total consideration of US$33.0m payable on completion, plus a potential
maximum earn out of US$3.0m 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. Enpro is being
acquired from members of the Enpro management team and Energy Ventures Private
Equity.
 
Enpro was founded in 2011 and since this time has developed leading subsea
production technology that has been adopted by offshore operators within the
global oil and gas industry. Enpro's products focus on delivering production
enhancing technologies and include Flow Access Modules, Flow Intervention
Services and Decommissioning. These products offer low cost, flexible field
development solutions to clients including production and intervention modules
to enhance recovery from oil and gas wells. 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 products are protected by patents that focus on the application and
methods of incorporating these products into the subsea system. To date, over
70 Enpro applications have been adopted in the North Sea, the Gulf of Mexico
and West Africa.
 
Enpro's business model is focused on technology and product development, with
all manufacturing outsourced to third parties. It is the intention to bring
much of this manufacturing in-house and utilise Hunting's existing global
manufacturing platform to commercialise further the technology across all of
the Group's key regional operating hubs. In addition, Hunting's broad customer
base offers significant opportunities to extend Enpro's current market reach.
 
This month, Enpro was named "2020 Company of the Year" by the industry body
Subsea UK.
 
Enpro's head office is in Aberdeen, UK, with subsidiaries in Ghana, Norway and
the US. The business currently has a headcount of 40 personnel and it is
anticipated that the senior management team will continue with Hunting.
 
Based on UK GAAP, in the year ended 31 December 2019 Enpro generated revenue
of US$14.1m and EBITDA of US$3.4m. At 31 December 2019, Enpro had net assets
of approximately US$9.4m, gross assets of US$14.5m and an order book of
approximately US$11.0m.
 
Hunting PLC will be announcing its 2019 Full Year Results, as planned, on
Thursday 27 February 2020.
 
Commenting on the acquisition, 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 utilised by major operators in key
offshore development basins across the world. In joining the Hunting group we
look forward to utilising its global operating platform to develop new
customers and sales and to capitalise on this growing market segment."
 
For further information, please contact:
 
   Hunting PLC                         Tel: +44 (0) 20 7321 0123
   Jim Johnson, Chief Executive
   Peter Rose, Finance Director
   Tarryn Riley, Investor Relations
   Buchanan                            Tel: +44 (0) 20 7466 5000
   Ben Romney
   Chris Judd
 
Notes to Editors:
 
About Hunting PLC
 
Hunting PLC is an international energy services provider to the world's
leading upstream oil and gas companies. Established in 1874, it is a premium
listed public company traded on the London Stock Exchange. The Company
maintains a corporate office in Houston and is headquartered in London. As
well as the United Kingdom, the Company has operations in Canada, China,
Indonesia, Mexico, Netherlands, Norway, Saudi Arabia, Singapore, United Arab
Emirates and the United States of America.
 
The Group reports in US dollars across five segments: Hunting Titan, US,
Canada, EMEA and Asia Pacific.
 
Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.
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