Business
Asset divestment and equity investment
Asset divestment and equity investment.
About this update from Hunting Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7491I\n Hunting PLC\n 15 December 2020\n \n \n \n \n \n \n \n \n For Immediate Release\n \n \n \n \n 15 December 2020\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Rival Acquires Hunting Subsidiary Assets To Increase US Footprint and Support International Expansion\n \n \n \n \n \n Acquisition of Assets of Hunting Energy Services Provides Rival Downhole Tools With Strong Manufacturing Capabilities to Align with Top Tier Engineering Expertise and Innovation\n \n \n \n \n \n \n Houston:\n \n Hunting PLC (LSE:HTG) (\"Hunting\"), the international energy services group and Rival Downhole Tools LC (\"Rival\"), a leader in downhole drilling technologies, today announced that Rival has acquired the operating assets of Hunting Energy Services (Drilling Tools), Inc. (\"HESDT\"), a wholly owned subsidiary of Hunting, in exchange for Hunting securing a minority equity interest in Rival. \n \n \n \n \n \n The complementary technologies, manufacturing, geographical footprints and engineering capabilities of the combined organizations - with 37 years' experience in downhole technologies - will further establish Rival's market position as one of the top downhole tool providers to the onshore U.S. market. In addition, the deal will provide the catalyst for future international expansion in the Middle East and, in particular, Saudi Arabia.\n \n \n \n \n \n \n Neil Fletcher, Chief Executive Officer of Rival\n \n , commented: \n \n \n \n \n \n \"This transaction marks a milestone in our mission to build a market leadership position and provide a complete offering in downhole tools, in our view increasing the value of our company by over $25 million. The addition of Hunting's drilling tool business will enable us to not only serve the U.S. but also accelerate market reach and product development, leaving us ideally placed for a series of international launches in 2021 starting with the Middle East. We are securing significant annual cost synergies, coupling top tier engineering with manufacturing capabilities, and expanding our product offerings to be well positioned in the U.S. and to launch overseas. This is a big moment for Rival.\"\n \n \n \n \n \n Commenting on the transaction, Jim Johnson, Chief Executive of Hunting, said:\n \n \n \n \n \n \"Th...