(Alliance News) - FTSE 250-listed oil & gas industry services provider Hunting PLC said Friday it acquired offshore riser maker RTI Energy Systems Inc for USD12.5 million in cash from Arconic Inc.
Shares in Hunting were 3.0% higher at 426.40 pence in London on Friday.
The product portfolio at RTI - which is protected by a number of patents - was described as "unique" by Hunting, being the only industry supplier of the more reliable titanium stress joints. The acquired firm also provides the fabrication and machining of other components used in the hydrocarbons industry as well as maintenance services.
In 2018, RTI generated an unspecified operating loss on revenue of USD7.1 million.
Hunting will fund the acquisition for its existing cash resources. In 2018, Hunting generated USD74.7 million in pretax profit on revenue of USD911.4 million.
"Given the new offshore deep water projects being commissioned within the US, Brazil and Guyana, RTIES, which will sit alongside and complement our Subsea operations, will provide Hunting with an enlarged product offering into the recovering deep water offshore market," Hunting Chief Executive Officer Jim Johnson said.
"The transaction also delivers on our stated strategic goal of targeting investments in differentiated technologies to enhance our value proposition for the offshore oil and gas industry", Johnson added.
Hunting (HTG)