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15 Aug 2011 07:00
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For Immediate Release | 15 August 2011 |
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Hunting PLC
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("Hunting" or the "Company")
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Acquisition
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Hunting acquires Dearborn for US$83.5m
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Hunting PLC (LSE:HTG), the international energy services company today announces the acquisition of Dearborn Precision Tubular Products, Inc. ("Dearborn") a company that provides specialist precision machining services, for a total cash consideration of US$83.5m (c.Β£51.1m). The consideration paid is on a cash free debt free basis and will be funded from Hunting's existing cash and bank borrowing facilities.
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Dearborn manufactures high precision tubular and rotating metal components for customers who require products with exacting tolerances and unique configurations. The components are used primarily for MWD/LWD* applications in the oil and gas sector, in addition to products for the aerospace and power generation industries. The business will contribute to Hunting's Well Construction range of products and services.
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Dearborn was one of the acquisitions, whose aggregate consideration amounted to around Β£90m, that was referred to in the announcement of the acquisition of Titan.
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Located in Fryeburg, Maine, USA, Dearborn was formed in 1977 and employs around 225 personnel. Dearborn operates from one facility providing over 140,000 sq. ft of production, storage and office accommodation.
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For the year ended 31 December 2010 Dearborn's revenue was US$44.5m (Β£28.7m), profit before taxation was US$7.4m (Β£4.8m) with EBITDA of US$9.1m (Β£5.9m). Dearborn's net assets and gross assets as at 31 December 2010 were US$44.0m (Β£28.0m) and US$47.0m (Β£29.9m) respectively.
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Dearborn has continued to perform well for the six months ended 30 June 2011 with the unaudited US GAAP management accounts reporting revenue and EBITDA of US$24.6m (Β£15.2m) and US$7.8m (Β£4.8m) respectively..
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The acquisition of Dearborn is expected to be earnings enhancing in the first full financial year before acquisition costs and normal acquisition adjustments such as fair value adjustments and the amortisation of intangible assets.
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Hunting is acquiring Dearborn from a company owned by three individual investors, one of whom is Dearborn's President who will remain with the business after the acquisition.
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Commenting on the acquisition, Dennis Proctor, Chief Executive of Hunting said:
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"Dearborn's expertise in manufacturing close tolerance parts for the oil and gas sector will enable Hunting to broaden our manufacturing offering and continue our drive to supply products into higher specification oil and gas wells and the increasingly challenging environments being pursued by the global energy industry."
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For further information please contact:
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Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director Β | Β Tel:+1 713 595 2950 Tel: +44 (0) 20 7321 0123 |
Buchanan Richard Darby Gabriella Clinkard | Tel: +44 (0) 20 7466 5000 |
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(*) - MWD/LWD - measurement-while-drilling / logging-while-drilling
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Notes to Editors:
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About HuntingΒ PLC
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HuntingΒ PLCΒ is an international energy services provider to the world's leadingΒ upstreamΒ oil and gas companies. Established in 1874, it is a fully listed public company traded on the London Stock Exchange. The Company maintains a corporate office inΒ HoustonΒ and is headquartered inΒ London. As well as theΒ United Kingdom, the Company has principal operations inΒ Canada,Β China,Β Hong Kong,Β Indonesia, Mexico, Netherlands, Singapore,Β United Arab EmiratesΒ and theΒ United States of America.
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