Business
Acquisition of RTI Energy Systems Inc
Acquisition of RTI Energy Systems Inc.
About this update from Hunting Plc
[{"type":"text","content":"\n \nRNS Number : 3290J Hunting PLC 16 August 2019 \n\n\n\n\nFor Immediate Release\n\n\n16 August 2019\n\n\n\n \n \n \n \n \n \nHunting PLC\n \n(\"Hunting\" or \"the Company\" or \"the Group\")\n \nAcquisition of the business and assets of RTI Energy Systems Inc.\n \nHunting PLC (LSE:HTG), the international energy services group, today announces the completion of the acquisition of the business and assets of RTI Energy Systems Inc. (\"RTIES\") for a total cash consideration of US$12.5m. The consideration payable has been funded from Hunting's existing cash resources.\n \nRTIES is a leading manufacturer of production riser technologies for deep water applications within the offshore oil and gas industry. RTIES's product portfolio incorporates proprietary technology and know-how which is protected by a number of patents. RTIES is unique within the industry as the only supplier of titanium stress joints, providing a more reliable, compact and lower total cost alternative to flexible joints and steel tapered stress joints. RTIES's customer base includes major exploration and production groups and primary suppliers to the industry. In addition to these product lines, RTIES generates revenue from the fabrication and precision machining of components used in the oil and gas industry, as well as providing inspection and maintenance services for customers. RTIES has historically focused its business on the Gulf of Mexico with its products being used in many deep water and ultra-deep water projects in the region. RTIES is an operating subsidiary of Arconic, Inc., a global leader in lightweight metals engineering and manufacturing based in the US.\n \nRTIES operates from a single site facility in Houston, Texas, US, with 87,000 square feet of covered operating floor space, and currently employs 21 personnel. It is anticipated that key members of the senior management team will continue with Hunting.\n \nRTIES is currently loss making as the global offshore drilling market continues its recovery and return to growth. However, given RTIES's product portfolio and market position management are optimistic of securing market opportunities to deliver returns going forward. Hunting's valuation of the balance sheet of RTIES has net assets of approximately $13.0m which underpins the ...