Energy services group Hunting has completed the acquisition of the business and assets of RTI Energy Systems, an operating subsidiary of Arconic, for a total cash consideration of US$12.5m.
The consideration payable has been funded from Hunting’s existing cash resources.
RTIES is a manufacturer of production riser technologies for deep water applications within the offshore oil and gas industry.
RTIES’s product portfolio incorporates proprietary technology and know-how which is protected by a number of patents. RTIES is unique within the industry as the only supplier of titanium stress joints, providing a more reliable, compact and lower total cost alternative to flexible joints and steel tapered stress joints.
In addition to these product lines, RTIES generates revenue from the fabrication and precision machining of components used in the oil and gas industry, as well as providing inspection and maintenance services for customers.
RTIES has historically focused its business on the Gulf of Mexico with its products being used in many deep water and ultra-deep water projects in the region.
RTIES operates from a single site facility in Houston, Texas, and currently employs 21 personnel. It is anticipated that key members of the senior management team will continue with Hunting.
Jim Johnson, Chief Executive said: “Given the new offshore deep water projects being commissioned within the US, Brazil and Guyana, RTIES, which will sit alongside and complement our Subsea operations, will provide Hunting with an enlarged product offering into the recovering deep water offshore market. The transaction also delivers on our stated strategic goal of targeting investments in differentiated technologies to enhance our value proposition for the offshore oil and gas industry.”