Energy services group Hunting has said it has completed the acquisition of Enpro Subsea for $33 million.
Hunting said Friday that, apart from the $33 million, the consideration also includes a potential maximum earn-out of US$3.0m based on EBITDA performance in 2020.
Founded in 2011, Enpro is being acquired from members of the Enpro management team and Energy Ventures Private Equity, Hunting said.
Based in Aberdeen, UK, Enpro provides subsea production technology for the offshore oil and gas industry.
The company’s technology has so far been deployed 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 utilize Hunting's existing global manufacturing platform to commercialize 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,” Hunting said.
“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,” Hunting said.
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.
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 utilized by major operators in key offshore development basins across the world. In joining the Hunting group we look forward to utilizing its global operating platform to develop new customers and sales and to capitalize on this growing market segment."