TTS Enters LOI to Acquire Wellquip Holding
TTS (Sense EDM AS) has entered into a Letter of Intent regarding acquisition of all shares in Wellquip Holding in Kristiansand, Norway, at a price of NOK 70 million, plus an "earn-out" of NOK 20 million, depending on the company's development during 2008 and 2009. The company delivers drilling equipment to the offshore industry. Turnover in 2007 is expected to be approximately NOK 40 million, and turnover in 2008 is expected to about NOK 100 million. Order backlog at November 01, 2007 is NOK 85 million.
Under the terms of the Letter of Intent, TTS shall conduct a due diligence review of the company and finalize all necessary contractual negotiations within mid December. Provided that the review is successful, the transaction will be closed at January 15, 2008. The Heads of Agreement is subject to approval of the final Sale/ Purchase Agreement by both companies' board of directors.
Per A Vatne who has developed several new and innovative solutions and products for the offshore industry founded Wellquip. The company has 24 employees, and main focus is on development, production and sales of roughnecks and other drilling products for offshore installations. The company has, amongst others, developed and patented an automatic, multi functional roughneck, JIM (Joint Integrated Machine). This roughneck has been the chosen solution for all newly contracted jack-up rigs for the North Sea, and is a part of both Sense EDM's deliveries to the jack-up rigs under construction in Singapore. Wellquip's product portfolio is complementary to Sense EDM's product range for the offshore industry, and by integrating the products in TTS' product range, there will be a considerable potential for increased commercialization and sales.
The letter of intent assumes that management and key-personnel that have an outstanding competence with drilling equipment will continue in their positions. Wellquip will constitute a part of Sense EDM and be important to TTS' targeting in drilling equipment market hereafter.
Neram AS, which is owned by Trym Skeie and Lesk AS, which is owned by Lena Skeie, and who are both shareholders in TTS Marine ASA, and owns 9.8% and 4.9% of the outstanding shares of Wellquip AS accordingly.
The acquisition of Wellquip AS is a major step further in TTS' targeting of the third business area; drilling and offshore, which comes in addition to ship equipment and port equipment.
- TTS Confirms Acquisition of the Drilling Technology Company Wellquip (Jan 03)
- TTS Enters LOI to Acquire Wellquip Holding (Nov 02)
- TTS Marine to Supply Drilling Equipment Package to Keppel FELS (Sep 24)