Under the terms of the definitive agreement, the total net consideration paid was $26.9 million with $24.9 million of the consideration financed through its existing credit facility and the remaining consideration in the form of seller financing. This acquisition increases Oil States' debt to capitalization ratio to approximately 23%.
Headquartered in Houma, La., AHSI designs, manufactures and services offshore and marine cranes, under the brand name Nautilus Marine Cranes. AHSI cranes are primarily installed on offshore production platforms, but are also, to a lesser extent, utilized on drilling rigs and offshore vessels.
"Like the other recently announced transactions, the AHSI acquisition demonstrates Oil States' commitment to enhancing and expanding our existing business lines through accretive, strategic transactions," stated Douglas E. Swanson, Oil States' president and chief executive officer.
"With this transaction we acquired a recognized brand name and a leading market position in both the manufacture and service of marine cranes. AHSI will double the size of our aftermarket service business while expanding and diversifying the product mix, geographic coverage and customer base in our Offshore Products segment. With the continued involvement of AHSI's key operating management and AHSI's strong backlog of new crane orders, we are excited about the prospects of the combined operations. In addition, AHSI has been very profitable and will provide significant synergies and additional opportunities for expansion. With consolidation savings and synergies, we expect the transaction to generate incremental EBITDA of approximately $4.5 million to $6.0 million per year."
Most Popular Articles