International energy service company Hunting has announced the £9million acquisition of Aberdeen firm Welltonic.
The operation, founded in 2001, is described as a provider of well-intervention services and is owned privately by four UK businessmen.
Welltonic’s only director listed at Companies House is Alan Reid, who is based in Aberdeen.
Shareholders include Mr Reid; Kenneth Murray, who is based in Singapore; and David Deans, who is based in Dubai.
Hunting said yesterday it would pay £7million on completion of the deal, followed by £2million payable on the achievement of certain performance conditions measured over 18 months.
Welltonic employs about 45 people globally – including 20 in Aberdeen and 24 in the Middle East – and provides well-intervention services through a range of downhole tools.
There is an in-house engineering and design group.
Hunting said the acquisition complemented its own well-intervention wireline operations.
For the year to September 2009, Welltonic’s pre-tax profits were £1.2million. Net assets and gross assets at that time were £4million and £6.1million respectively.
Hunting chief executive Dennis Proctor said: “This acquisition is another bolt-on transaction which strengthens our international presence while providing increased exposure to the high-margin well-intervention market.
“Welltonic complements our existing activities in what management and wider market commentators believe to be a high-growth sector.”
In summer, Hunting said the Aberdeen area was a continuing focus for investment in its business, and that more jobs would be created as it expanded.
Mr Proctor said the company, which employs about 280 in the north-east at tubular operations at Portlethen and Montrose and at the Hunting Cromar wireline and pressure-control business in the Granite City, would invest about £20million to move from four plants to two larger operations, one at Portlethen and one at Fordoun.
Mr Proctor said that the north-east moves would be completed by early 2011, but it was too early to say how many jobs would be added.
He was planning acquisitions after selling Hunting’s Canadian oil and gas midstream business Gibson Energy last December for more than £500million.
These included National Coupling Company in the US for about £38million and Indonesia-based PTSMB for £6.56million.