Hunting PLC, the international energy services group, has agreed to acquire TSI Acquisition Holdings LLC and its subsidiaries including Titan Specialties, Ltd. for a total consideration of US$ 775 million (approx £475 million).
Titan is a leading provider of perforating gun systems, shaped charges, well logging instrumentation, perforating gun switches and other engineered hardware used in the drilling, completion and maintenance of oil and gas wells.
The increasing complexity of horizontal wells drives demand for Titan's products coupled with positive sector dynamics which are driving an anticipated increase in on-shore shale oil and gas production and increases in US land drilling and completion spending.
Peter Rose, Hunting’s finance director, said the purchase of Titan could help the expanded company exploit growing demand for Titan’s equipment beyond North America.
“This ticks every box in our acquisition strategy,” he said. “At the moment 95% of Titan’s sales are in the US. We can take them global – China is an obvious place – and market them to our offshore and onshore clients.”
The consideration of US$ 775 million (£475 million) will be satisfied through Hunting's existing cash balances, the proceeds from the share Placing announced separately today, as well as the New Bank Facility of £375 million. The Placing of 13,175,838 new ordinary shares in the Company is fully underwritten and represents approximately 9.9% of the Company's existing issued share capital.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/08082011/hunting_acquires_titan_for_775_million_dollars/