Aberdeen-headquartered KCA Deutag (KCAD) has completed its £480million takeover of a rival contractor.
The deal sees KCAD take over the Omani and Saudi Arabian business of land drilling firm Dalma Energy.
KCAD announced the deal in March, worth £480million, including £250million in debt.
Dalma’s shareholders will receive £72million in cash and an equity shareholding of about 22% in the enlarged KCAD group, valued at £160million.
Dalma’s Omani and Saudi business had revenues of £225million in 2017.
The deal puts KCAD among the largest owners and operators of drilling rigs at 46.
Globally the firm has 83.
The enlarged business will have about 9,700 employees and will retain the KCA Deutag brand.
KCAD estimates that synergies between the two businesses should generate savings of more than £7.2million per year.
The deal also adds £800million to the expanded group’s backlog.
Norrie McKay, CEO of KCA Deutag said: “Today is a major milestone in KCA Deutag’s long history and a fundamental part of our strategy as we look to grow our business, either organically or by acquisition, in those markets where we see substantial growth opportunities.
“I am therefore delighted to welcome our new Dalma colleagues to the KCA Deutag group as we enter an exciting new chapter for our business.”
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