Sovereign Oilfield Acquires RDT Precision Engineering Limited
Sovereign Oilfield Group has completed the acquisition of RDT Precision Engineering Limited ('RDT') for a total consideration of £2.40 million.
RDT is a precision engineering company specialising in the supply of well heads for the oil industry. RDT was founded in 1974 and operates out of its owned manufacturing facilities in East Kilbride, Scotland. RDT primarily undertakes contract engineering work for FMC Energy Systems and Vetco International Limited.
The acquisition of RDT adds a new service line to the drilling and engineering division's operations and enhances the machining capabilities of the Group.
For the twelve months ended December 31, 2005, RDT had unaudited turnover of £2.4 million and profit before taxation of £0.3 million. Net assets at December 31, 2005 were £1.29 million. For the 11 months to November 30, 2006 RDT had unaudited turnover of £3.2 million and a profit before taxation of £0.96 million as extracted from unaudited management accounts.
The total consideration of £2,397,700 was satisfied by a payment in cash. All key members of the management team are continuing with the business and a new managing director is being appointed.
Graham Burgess, Chief Executive of Sovereign Oilfield Group plc stated: -
"RDT represents an excellent strategic fit with Sovereign's existing operations, affording greater critical mass in both the North Sea and international markets. It also illustrates Sovereign's continuing ability to identify earnings enhancing deals that both complement and expand the Group's range of services.'.
Sovereign, which joined AIM in September 2005, was formed in October 2003, by Dr Peter Felter and Mr Graham Burgess, for the specific purpose of developing an oilfield service company focused on:
- the provision of an integrated fabrication service to oil and gas companies and contractors in the UK and internationally;
- the provision of integrated drilling and engineering services to oil and gas companies and contractors in the UK and internationally;
- an emphasis on 'high tech' and IP and the promotion of new technologies for enhancing oil and gas drilling and production.
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