Acquisition of the Production Testers International business (“PTI”)
Expro today announces the conditional acquisition of the Production Testers International business (PTI) from Production Testers International HK Ltd and Production Testers International Ltd.
PTI, based in Asia, is a leading well services business providing fast track production systems to the upstream oil and gas industry. PTI primarily designs, installs, commissions and operates production facilities and production optimisation systems for use in oilfield developments.
The consideration for the acquisition is up to $120m in cash, including a one year earn-out of up to $30m. The consideration will initially be funded using Expro’s existing cash and available debt facilities but will be fully refinanced by new investment from Expro’s shareholders (1) , including consideration received from the sale of the group’s AX-S prototype.
The PTI business will be bought on a debt free, cash free basis. Completion is subject to fulfilment of a number of conditions which are expected to be satisfied within the next six weeks.
The acquisition will significantly expand Expro’s product and service capability and represents an excellent opportunity for the group to accelerate its growth and enhance its market position consistent with its continuing strategy. Pro forma revenue for the PTI business for the 12 months to 31st May 2010 was $43m, with pro forma EBITDA for the same period of $24m.
(1) Expro’s majority shareholders are funds managed by Candover and Goldman Sachs Capital Partners.
Acquisition of the Production Testers International business (“PTI”)
Expro today announces the conditional acquisition of the Production Testers International business (PTI) from Production Testers International HK Ltd and Production Testers International Ltd.
PTI, based in Asia, is a leading well services business providing fast track production systems to the upstream oil and gas industry. PTI primarily designs, installs, commissions and operates production facilities and production optimisation systems for use in oilfield developments.
The consideration for the acquisition is up to $120m in cash, including a one year earn-out of up to $30m. The consideration will initially be funded using Expro’s existing cash and available debt facilities but will be fully refinanced by new investment from Expro’s shareholders (1) , including consideration received from the sale of the group’s AX-S prototype.
The PTI business will be bought on a debt free, cash free basis. Completion is subject to fulfilment of a number of conditions which are expected to be satisfied within the next six weeks.
The acquisition will significantly expand Expro’s product and service capability and represents an excellent opportunity for the group to accelerate its growth and enhance its market position consistent with its continuing strategy. Pro forma revenue for the PTI business for the 12 months to 31st May 2010 was $43m, with pro forma EBITDA for the same period of $24m.
(1) Expro’s majority shareholders are funds managed by Candover and Goldman Sachs Capital Partners.