Odim Acquires JMC and Creates Deepwater Growth Platform
ODIM plans to acquire Stavanger-based JMC for NOK 100 million. Combined with ODIM's proprietary ODIM CTCU technology and existing infrastructure, this acquisition will form a solid foundation for ODIM's goal of becoming a leading player in automated handling solutions in the fast-growing deepwater segment.
The agreement is subject to due diligence and board approval.
"We have previously communicated that we see a substantial potential in the deepwater segment based on our unique ODIM CTCU technology," comments ODIM CEO Jogeir Romestrand. "Both expertise and capacity are important factors in realizing this potential. I'm pleased to say that acquiring JMC gives us first class expertise and valuable engineering capacity. "This represents an important and necessary first step towards making us the leading provider of automated handling solutions for deepwater operations."
JMC has the technology, infrastructure and organization to be an important part of ODIM's deepwater strategy. JMC has built a competent team in drilling, well services and subsea segments, which can be put together with ODIM's unique ODIM CTCU technology to constitute a powerful team. Customers of both companies will benefit from an even more solution-oriented supplier.
"We have a very good impression of and an excellent relationship with ODIM," says managing director Jens O. Myklebust at JMC. "We're impressed by what ODIM has accomplished over the past couple of years, and we are looking forward to being a part of the family."
Of the NOK 100 million transaction price, NOK 50 million will be paid in cash and the rest in ODIM shares with a lock-up period of 12 months. In addition, existing JMC shareholders will receive a maximum earn-out of NOK 50 million, based on the volume of module-handling contracts and specific EBITDA goals for 2007 and 2008. If EBITDA in 2009 exceeds NOK 50 million, the present owners of JMC will also receive a bonus of NOK 20 million.
JMC's business focus is to develop technical products and services to support oil- and service companies in their challenges for safer and more effective solutions. JMC is a reliable, innovative and highly experienced supplier of oil related engineering services- and products. From the base in Stavanger,
JMC have been offering state-of-the-art solutions within Well Service and Subsea Systems, Pumping Systems and Drilling & Material handling to leading oil companies since 1989.