Cromar specializes in providing equipment and support to well service operations for multi-national oil and gas operators and field service companies worldwide. Cromar employs 66 people at its operations in Aberdeen, Houston and Singapore. The Company's turnover for the 12 months to 31 March 2005 was £10 million, with operating profit of £1.8 million and profit before tax of £1.6 million. The gross assets of Cromar at 31st March 2005 were £7.5 million.
The acquisition represents a further broadening of Hunting's range of service capabilities adding new product lines such as wireline pressure control, specialised tools and perforating equipment. The acquisition of Cromar is expected to be immediately earnings enhancing to Hunting.
The total cash consideration for the acquisition of Cromar will amount to around £9.6m payable in cash of which £1.5m is subject to the achievement of certain performance targets during the 18 month period following completion.
Commenting on the acquisition, Dennis Proctor, Chief Executive of Hunting, said: 'The acquisition of Cromar gives Hunting the opportunity to add to the significant product range and services we provide to multi-national oil and gas operators and conforms to our proprietary, strategic, geographic and asset synergies.'
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