Business
Sale of Jack-Up Business to TechnipFMC & Circular
Sale of Jack-Up Business to TechnipFMC & Circular.
About this update from Plexus Holdings
[{"type":"text","content":"\n \nRNS Number : 0206U Plexus Holdings Plc 19 October 2017 \n\n \nPlexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil Equipment & Services\n\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 \n\nPlexus Holdings PLC (\"Plexus\" or \"the Company\")\nSale of Wellhead Exploration for Jack-Up Applications Business to TechnipFMC and Circular re: General Meeting \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 sale of its wellhead exploration equipment and services business for Jack-Up applications (the \"Jack-up Business\") to FMC Technologies Limited (\"TFMC\"), a subsidiary of TechnipFMC (Paris:FTI)(NYSE:FTI) one of the leading oil & gas service and equipment companies (the \"Disposal\"). In addition and as part of the Transaction, Plexus, Plexus' subsidiary POSL and TFMC will also be entering into a Collaboration Agreement (\"CA\") which establishes a framework to work together both on the development of existing POS-GRIP IP for applications outside of jack-up exploration, as well as future new technologies.\n \nThe Disposal follows the signing of a conditional Business Purchase Agreement (\"BPA\") by Plexus, POSL and TFMC. Under the terms of the BPA, the Plexus Group will receive an initial gross cash consideration of £15,000,000, subject to certain adjustments, with an additional sum of up to £27,500,000 payable dependent on the future performance of the Jack-up Business during a three-year earn-out period. The earn-out has the potential to increase the total cash consideration to £42,500,000. \n \nThe Disposal is in line with Plexus' strategy of increasing industry awareness of its POS-GRIP friction grip technology by initially focusing on proving the superior qualities of its equipment within the jack-up wellhead exploration market, where to date its technology has been deployed on hundreds of wells worldwide, before targeting other markets such as surface production, subsea and de-commissioning. The Board of Plexus believes that the Disposal represents a significant milestone for the Company as it demonstrates the at...