KCA Deutag Enters Combination Agrement with Dalma Energy
Drilling and engineering contractor KCA Deutag (KCAD) has entered into an agreement with the shareholders of Dalma Energy LLC to combine their respective businesses through the acquisition by KCAD of Dalma’s Omani and Saudi Arabian companies.
Upon completion, the combined group will continue to operate under the KCAD brand name and will have approximately 9,700 employees, KCAD confirmed.
"The acquisition of Dalma’s operations in Saudi Arabia and Oman will significantly strengthen our foothold in the Middle East and provide us with a stronger platform to develop and grow our business in what is an exceptionally attractive region,” Norrie McKay, CEO of KCAD, said in a company statement.
“Dalma’s operations are an excellent strategic fit, not only consolidating our position in Oman as the country’s leading owner and operator of onshore drilling rigs but also enabling us to offer our operational expertise in the substantial Saudi Arabian onshore drilling market, which has been a key target for KCAD,” he added.
KCAD had revenue of over $1.16 billion and EBITDA of $219-224 million in the year ending December 31, 2017. The Dalma business had revenue of $312 million and EBITDA of $110 million in the year during the same period.
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