Hunting PLC today announced the completion of the acquisition of Enpro Subsea Limited for a total consideration of US$33.0m payable on completion, plus a potential maximum earn out of US$3.0m based on EBITDA performance in 2020. The consideration payable is on a cash-free-debt-free basis and payable in cash and has been funded from Hunting's existing cash resources. Enpro is being acquired from members of the Enpro management team and Energy Ventures Private Equity.

Enpro was founded in 2011 and since this time has developed leading subsea production technology that has been adopted by offshore operators within the global oil and gas industry. Enpro's products focus on delivering production enhancing technologies and include Flow Access Modules, Flow Intervention Services and Decommissioning. These products offer low cost, flexible field development solutions to clients including production and intervention modules to enhance recovery from oil and gas wells. The Flow Access Module technology supports the use of standard subsea SPS hardware leading to shorter development timescales and quicker production of hydrocarbons.

Enpro's products are protected by patents that focus on the application and methods of incorporating these products into the subsea system. To date, over 70 Enpro applications have been adopted in the North Sea, the Gulf of Mexico and West Africa.

Enpro's business model is focused on technology and product development, with all manufacturing outsourced to third parties. It is the intention to bring much of this manufacturing in-house and utilise Hunting's existing global manufacturing platform to commercialise further the technology across all of the Group's key regional operating hubs. In addition, Hunting's broad customer base offers significant opportunities to extend Enpro's current market reach.

This month, Enpro was named "2020 Company of the Year" by the industry body Subsea UK.

Enpro's head office is in Aberdeen, UK, with subsidiaries in Ghana, Norway and the US. The business currently has a headcount of 40 personnel and it is anticipated that the senior management team will continue with Hunting.

Based on UK GAAP, in the year ended 31 December 2019 Enpro generated revenue of US$14.1m and EBITDA of US$3.4m. At 31 December 2019, Enpro had net assets of approximately US$9.4m, gross assets of US$14.5m and an order book of approximately US$11.0m.

Hunting PLC will be announcing its 2019 Full Year Results, as planned, on Thursday 27 February 2020.

Commenting on the acquisition, Jim Johnson, Chief Executive of Hunting, said:
"The acquisition of Enpro further strengthens Hunting's subsea offering and adds a high technology product group to our portfolio. The offshore market continues to strengthen and we look forward to providing a wider technology offering to our customers who continue to seek lower cost, enhanced production and more efficient solutions to the production of oil and gas."

Ian Donald, CEO of Enpro, added:
"Enpro's technology offering has been utilised by major operators in key offshore development basins across the world. In joining the Hunting group we look forward to utilising its global operating platform to develop new customers and sales and to capitalise on this growing market segment."

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