INTERNATIONAL energy service group Hunting said yesterday it had agreed to acquire Houston-based Innova-Extel, a supplier of harsh-environment electronics technology to the energy industry.
It said the deal was for £80million in cash, which would be paid on completion; expected by the end of this month.
Founded in 1989, Innova-Extel employs about 300 people operating from two sites totalling 170,000 square feet. Innova Electronics, the core business, manufactures harsh-environment printed circuit boards (PCBs) for downhole logging tools.
This business also offers several proprietary products for use in downhole tools including power connectors/supplies plus system-integration services for harsh-environment computers.
Extel is a precision machining facility providing downhole completion tools.
Innova-Extel’s 2009 pre-tax profits were £705,000.
Hunting said the acquisition would add significantly to its well-construction portfolio. The global directional drilling market grew at an annual average rate of 22% between 2000 and 2008.
Nowadays, about two-thirds of all wells drilled in the world are drilled either directionally or horizontally.
UK-based Hunting is acquiring Innova-Extel from US private-equity firm American Capital, certain American Capital affiliates and senior management.
Hunting chief executive Dennis Proctor said: “Innova-Extel forms an important component of our stated growth strategy. It adds to our technology for high-pressure, high-temperature applications.”
The group has a significant presence in the north-east through tubular operations at Portlethen and Montrose, at the Hunting Cromar wireline and pressure-control business in Aberdeen and through Aberdeen well-intervention specialist Welltonic.