finance

Enpro Subsea bought in £28m deal



A Scottish oil services technology firm has been bought by stock market listed energy group Hunting in a deal worth up to £28m.

Aberdeen-based Enpro Subsea, which employs around 40 staff in Scotland, Ghana, Norway and the US, has been acquired by Hunting in the deal struck with its management team and Energy Ventures Private Equity.

The deal value is just under £26m with a further £2m payable depending on financial performance in 2020.

Enpro was founded in 2011 and has developed subsea production technology used by offshore operators across the global oil and gas industry.

Its products are focused on delivering production improvements.

All manufacturing is currently outsourced to third parties but after the completion of the deal is the intention to bring much of this manufacturing in-house and utilise Hunting’s existing global manufacturing platform. Hunting said its broad customer base also “offers significant opportunities to extend Enpro’s current market reach.”

 In the year ended 31 December 2019 Enpro generated revenue of $14.1m and pre-tax earnings of $3.4m.

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.”

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