Acquired manufacturer of high precision tubular and rotating metal components for oil and gas sector.
Hunting Plc, London, (London: HTG.l) has acquired privately held, Fryeburg, Maine-based Dearborn Precision Tubular Products Inc. for US$83.5 million in cash.
Hunting acquired Dearborn from a company owned by three individual investors, one of whom is Dearborn’s president and will remain with the business after the acquisition.
Dearborn manufactures high precision tubular and rotating metal components for customers who require products with exacting tolerances and unique configurations. The components are used primarily for measurement-while-drilling/logging-while-drilling applications in the oil and gas sector, in addition to products for the aerospace and power generation industries.
The assets will be added to Hunting’s well construction range of products and services.
The acquisition of Dearborn is expected to be earnings enhancing in the first full financial year before acquisition costs and normal acquisition adjustments such as fair value adjustments and the amortization of intangible assets.
Hunting chief executive Dennis Proctor says, “Dearborn’s expertise in manufacturing close tolerance parts for the oil and gas sector will enable Hunting to broaden our manufacturing offering and continue our drive to supply products into higher specification oil and gas wells and the increasingly challenging environments being pursued by the global energy industry.”