Oil technology sale
Plexus in £42.5m wellhead sale to TechnipFMC
Ben Van Bilderbeek: ‘milestone deal’
Plexus Holdings, the Aberdeen-based oil and gas engineering services business has sold its wellhead exploration equipment and services business for jack-up applications in a deal worth up to £42.5 million.
The buyer is FMC Technologies, a subsidiary of London-based TechnipFMC, an oil & gas service and equipment company which was created earlier this year from the merger of FMC Technologies and Technip.
AIM-quoted Plexus Group will receive an initial £15m, with an additional sum of up to £27.5m payable on future performance during a three-year earn-out period.
As part of the transaction, Plexus subsidiary POSL and TFMC have signed a collaboration agreement.
TechnipFMC is listed on the NYSE and Euronext Paris exchange with a market capitalisation of $12.5 billion and is a component of both the US S&P 500 and the French CAC40 stock market indices. The French government owns a 4% stake in the company.
The board of Plexus believes the disposal is a significant milestone for the company as it demonstrates the attractiveness of its POS-GRIP wellhead technology.
CEO Ben Van Bilderbeek, said: “I am pleased to announce this important transaction with TechnipFMC, one of the world’s foremost oil and gas service companies.
“I believe that the disposal and collaboration agreement with TechnipFMC opens up new opportunities for our technology.
“TechnipFMC is acquiring a business which has supplied a wide range of blue chip operators of the calibre of BP, Centrica, ENI, Maersk, Royal Dutch Shell, Statoil, and Total with wellheads for use on hundreds of wells worldwide and which already has a strong market reputation in the UKCS and ECS, particularly for HP/HT applications.
“Going forward there are numerous opportunities for the application of POS-GRIP technology and encouragingly, as the recent contract win from Centrica for the supply of surface production application equipment demonstrates, we are already making progress in this regard.”