Hunting has acquired the Welltonic Group of Companies, a provider of well intervention services.
The consideration will comprise an upfront cash consideration of £7.0m payable on completion, followed by a deferred consideration of £2.0m payable on the achievement of certain performance conditions measured over an 18 month period.
Welltonic employs around 45 personnel globally and provides well intervention services through a range of downhole tools with operations in the UK, Middle East and Asia. An in house engineering and design group allows for the further growth and development of Welltonic's product offering through established facilities in Aberdeen, Dubai and Singapore. This acquisition complements Hunting's existing well intervention wireline operations and strengthens the Company's global geographical presence in this important growth market.
Welltonic was founded in 2001 and is privately owned by four UK businessmen, two of whom will remain with the business.
For the year ended September 30, 2009, Welltonic's profit before taxation was £1.2m with EBITDA of £2.0m. Welltonic's net assets and gross assets as at September 30, 2009 were £4.0m and £6.1m respectively.
Commenting on the acquisition, Dennis Proctor, Chief Executive Officer of Hunting said, "This acquisition is another bolt-on transaction which strengthens our international presence while providing increased exposure to the high margin well intervention market. Welltonic complements our existing activities in what management and wider market commentators believe to be a high growth sector."
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