(Alliance News) - James Fisher & Sons PLC on Friday said it has agreed to sell RMSpumptools Ltd to the UK arm of ChampionX Corp.
Shares in James Fisher jumped 8.1% to 268.00 pence late on Friday morning in London.
The Barrow In Furness, Cumbria-based marine services company said ChampionX UK Ltd will acquire Oldmeldrum, Scotland-based RMSpumptools for a total enterprise value of GBP90 million.
James Fisher expects the net proceeds to come to approximately GBP83 million. It said it will use this to reduce leverage and strengthen its balance sheet.
Texas-based ChampionX is a chemistry solutions, artificial lift systems, equipment and technology provider for oil and gas companies. RMSpumptools is a developer of electrical and mechanical systems for the electrical submersible pumps artificial lift industry, alongside various other products for the oil, gas and renewable energy sectors.
"The disposal is in line with James Fisher's strategy to simplify and focus its portfolio through the sale of non-core assets," the company said.
James Fisher further explained that because RMSpumptools operates in the oil and gas sector, it "has minimal synergies with the rest of the group".
"The sale of RMS marks a significant step in simplifying our portfolio to further strengthen our financial position and create a platform for sustained recovery," commented Chief Executive Officer Jean Vernet. "We believe the transaction represents good value for our shareholders, reflecting RMS's strong performance in recent years.
"The disposal allows James Fisher to continue its strategy of focusing and simplifying the group, investing in the core portfolio and innovative new technologies that will deliver future growth."
James Fisher expects the transaction to complete in the second half of this year, subject to shareholder approval and other conditions. These include merger control clearance from the Saudi Arabian General Authority for Competition.
By Emma Curzon, Alliance News reporter
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James Fisher and Sons (FSJ)