Aberdeen-based international oilfield service company Expro yesterday announced the sale of one of its divisions in a near-£400million deal.
German group Siemens is buying Expro’s connectors and measurements (C&M) business, including the Tronic and Matre brands, for £397million.
Expro said its C&M operation was a market leader in the design, manufacture, assembly and installation of subsea electrical power and data connectors and temperature and pressure sensors.
The unit, which had revenue of about £75million in 2011, employs about 450 people at Ulverston in northern England, Norway, America, Brazil and Malaysia.
Expro chief executive Charles Woodburn said: “We received several unsolicited indications of interest for our C&M business last year, allowing us to explore strategic alternatives that led to the optimal outcome for our shareholders, customers and employees.
“We are very pleased with the result of the sale process. We will look to use the net proceeds from the sale of the C&M business to repay existing borrowings and support our strong position within the industry by further investing in the growth strategy of our core business.”
The transaction is conditional on approval from competition authorities in Norway. Completion of the sale is expected to take place in May.
Expro, which has about 800 people in Aberdeen out of a worldwide workforce of 5,000, was sold to private-equity interests in July 2008 for £1.81billion.
The consortium of Candover, Goldman Sachs Capital Partners and AlpInvest Partners was successful in its move for the company, despite interest from US giant Halliburton.
Last month, Expro appointed a new chairman and reshaped its senior team as it eyed more international growth. It turned to businessman Sir George Buckley to fill the vacancy left by Graeme Coutts, who stepped down as chairman last July.