TechnipFMC has been reached an agreement with Plexus to acquire Plexus’s Wellhead exploration equipment and services business for jack up applications.
TechnipFMC believes that this portfolio expansion in the mudline and high pressure high temperature (HPHT) arena should enable the company to be a leading provider of products and services to the global jack up exploration drilling market.
The business will be integrated into the TechnipFMC Surface Technologies segment and will include the transfer of key personnel from Plexus, with their specialized know-how, to ensure continuity and ongoing customer support.
The business will continue to operate from the existing location in Dyce, Aberdeen, UK. Completion of the transaction is subject to the satisfaction of certain closing conditions.
Richard Alabaster, president of TechnipFMC’s Surface Technologies business, stated: “I am very pleased that we have reached this agreement, which fits within TechnipFMC Surface Technologies’ strategy to extend and strengthen our position in exploration drilling products and services while leveraging our global field presence. It also enhances TechnipFMC’s capability in HPHT applications.”
Plexus will receive an initial gross cash consideration of £15 million subject to certain adjustments, with an additional sum of up to £27.5 million payable dependent on the future performance of the Jack-up Business during a three-year earn-out period. The earn-out has the potential to increase the total cash consideration to £42.5 million.
Plexus’ CEO, Ben Van Bilderbeek, said: “We look forward to working closely with TechnipFMC to ensure the earn-out period is as successful as possible for both companies and also under the Collaboration Agreement with the potential to further develop our existing POS-GRIP IP for applications outside of the Jack Up exploration business. I will be working hard as CEO of Plexus with my team to grow the business and repeat the past success we have enjoyed in raising standards for HP/HT exploration wellheads in the wider energy sector, as well as focusing on generating shareholder value.”