Prysmian Group has signed an agreement to acquire 100% of the privately-held US company Gulf Coast Downhole Technologies (GCDT) for an initial consideration, subject to adjustment, of approximately US$45 million in cash. The transaction involves an earn-out determined on an average combined EBITDA in the next three years and for a maximum earn-out payment of about US$21 million.
GCDT is based in Houston and is active in the design and supply of innovative downhole equipment for the Oil & Gas industry, with a turnover of approximately US$ 34 million in 2014. GCDT products are installed in oil and gas wells around the world and consist of integral components in the systems that provide downhole control, injection, flow assurance and monitoring. GCDT's customer base covers a diverse range of oil field service companies including Halliburton, Baker Hughes, Weatherford and Schlumberger. GCDT products are ultimately installed in completions operated by major oil and gas producers like Chevron, ExxonMobil and Shell around the globe.
GCDT fits fully into the Group's expansion strategy in the business of Subsea Umbilicals, Risers and Flowlines (SURF) and complements its Draka-branded DHT offered product range. The acquisition of GCDT allows a further increased differentiation of the product offer, namely thanks to an enhanced portfolio of protectors and the patented Safety-Strip® technology for faster and safer installation of intelligent completion systems. With the acquisition of GCDT, the Prysmian Group through its brand Draka will grow closer to its customers by shifting from a pure subcomponent supplier to offering a suite of package solutions to its service sector clients.
"Thanks to the integration between our SURF-DHT business and GCDT, Prysmian Group will be able to accelerate growth in an attractive high-value, high-ROCE (Return on Capital Employed) business and increase exposure to high-tech segments," commented Prysmian Group CEO, Valerio Battista. "We also aim to improve customer proximity by leveraging our global footprint and bringing GCDT's innovation capabilities to a broader customer base. Integration of the two brands is key for the development of an enhanced and versatile supply chain.”
Roy Torrance, President of GCDT said: "The acquisition of GCDT by the Prysmian Group recognises the unique know-how and expertise developed within GCDT and by using our combination of strengths it presents a great opportunity for the continued growth of GCDT which will benefit our customers on both domestic and international levels."
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/25092015/prysmian-acquires-gcdt-1487/