Business
Acquisition of "FES" & Capital Allocation Policy
Acquisition of "FES" & Capital Allocation Policy.
About this update from Hunting Plc
[{"type":"text","content":"\n\nThis announcement contains inside information\n \n\n\n\n\nFor Immediate Release\n\n\n24 June 2025\n\n\n\n\n\n \n \n \n \n \nHunting PLC\n \n(\"Hunting\" or \"the Company\" or \"the Group\")\n \nAcquisition of Flexible Engineered Solutions (Group) Holdings Limited (\"FES\")\n \nand\n \nCapital Allocation Policy Update\n \nHunting acquires FES, a leading provider of fluid transfer solutions to the offshore oil and gas and renewable energy industries, for £50 million\n \nHunting PLC (LSE:HTG), the precision engineering group, today announces that it has completed the acquisition of the entire issued share capital of Flexible Engineered Solutions (Group) Holdings Limited (\"FES\"), a company based in the United Kingdom, for a total cash consideration of £50m, on a cash free / debt free basis, and which is subject to customary post-completion adjustments.\n \nAcquisition highlights and strategic rationale\n \nThe transaction represents an important step towards the delivery of the Hunting 2030 Strategy, strengthening Hunting's growing offshore / subsea revenue profile and increasing the Group's product coverage of deepwater and ultra deepwater markets:\n \n· The transaction provides access to proprietary subsea fluid transfer technologies and system solutions for the offshore oil and gas and renewable energy industries, which are well-aligned to Hunting's current customer base.\n· FES's portfolio of fluid transfer solutions are used in Floating Production Storage and Offloading vessels (\"FPSOs\") and Subsea Distribution Systems (\"SDSs\") and provides significant product bundling and cross-selling opportunities for Hunting's other subsea businesses across key offshore regions.\n· FES's mission critical and highly engineered proprietary technology has driven robust growth and delivered a strong margin profile, which will be accretive to Hunting's EBITDA margins.\n· There is significant potential to grow FES's existing international presence via Hunting's global footprint in key customer locations such as Brazil, South East Asia, USA and West Africa...