Business
Completes Sale of Jack-Up Business to TechnipFMC
Completes Sale of Jack-Up Business to TechnipFMC.
About this update from Plexus Holdings
[{"type":"text","content":"\n \nRNS Number : 5534D Plexus Holdings Plc 01 February 2018 \n\n \nPlexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil Equipment & Services\n \nThe information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.\n \nPlexus Holdings PLC (\"Plexus\" or \"the Company\")\nCompletion of Sale of Wellhead Exploration for Jack-up Applications Business and Signing of Collaboration Agreement with TechnipFMC \n \nPlexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, is pleased to announce the completion of the sale of its wellhead exploration equipment and services business for jack-up applications (the \"Jack-up Business\") and the licencing of certain intellectual property to FMC Technologies Limited (\"TFMC\"), (together, the \"Disposal\"), and the receipt of an initial net consideration of £14,164,344. An additional sum of up to £27,500,000 is payable dependent on the future performance of the Jack-up Business during a three-year earn-out period. TFMC is a subsidiary of TechnipFMC (Paris:FTI)(NYSE:FTI), one of the leading oil and gas service and equipment companies.\n \nCompletion of the Disposal follows the signing of a conditional Business Purchase Agreement (\"BPA\") by Plexus, Plexus' subsidiary Plexus Ocean Systems Limited (\"POSL\") and TFMC (as announced on 19 October 2017). Shareholder approval of the Disposal was obtained on 6 November 2017. \n \nCollaboration Agreement\nThe Company is also pleased to announce that Plexus, POSL and TFMC have entered into a Collaboration Agreement which establishes a framework for the development of existing POS-GRIP IP for applications outside of the jack-up exploration wellhead application. The Collaboration Agreement provides for the formation of a joint Steering Committee who will be able to explore potential areas of future collaboration.\n \nStrategy\nThe Disposal and Collaboration Agreement represent a strategic milestone for Plexus, and fits with Plexus' long-term objective to firmly establish the POS-GRIP method of engineering within the wider energy sector. \n \nThe Disposal is in line with Plexus' strategy of increa...