Hunting Buys Enpro Subsea

Business & Finance

Energy services group Hunting has acquired Enpro Subsea from members of the Enpro management team and Energy Ventures Private Equity for a total consideration of $33 million.

The deal also has a potential maximum earn out of $3.0 million based on EBITDA performance in 2020.

The Aberdeen-based business,with subsidiaries in Ghana, Norway and the US, currently has a headcount of 40 personnel and it is anticipated that the senior management team will continue with Hunting.

“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,” said Jim Johnson, CEO of Hunting.

Based on UK GAAP, in the year ended December 31, 2019 Enpro generated revenue of $14.1 million and EBITDA of $3.4 million, with order book of approximately $11.0 million.

“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,” added Ian Donald, CEO of Enpro.

The consideration payable is on a cash-free-debt-free basis and payable in cash and has been funded from Hunting’s existing cash resources.