TechnipFMC has agreed to acquire Plexus Holding's Wellhead exploration equipment and services business for jackup applications - the Jack-up Business - for up to US$56 million (£42.5 million).
Plexus will initially receive $19.7 million, with a further up to $36.2 million dependent on the future performance of the Jack-up Business during a three-year earn-out period.
TechnipFMC says the expansion in the mudline and high-pressure, high-temperature (HPHT) arena enables TechnipFMC to be a leading provider of products and services to the global jack up exploration drilling market.
Plexus says the move is in line with its strategy of increasing industry awareness of its POS-GRIP friction grip technology, which initially focused on equipment for the jackup wellhead exploration market, before targeting other markets, such as surface production, subsea and decommissioning.
As part of the deal, Plexus, Plexus’ subsidiary POSL and TechnipFMC will enter a collaboration agreement with a view to working together both on the development of existing POS-GRIP IP for applications outside of jackup exploration, as well as future new technologies.
Ahead of completion, Plexus Group will provide certain services to TFMC on a transitional basis under a transitional services agreement. Plexus and TechnipFMC have also agreed to enter into two license agreements, one royalty free and the other royalty bearing, which deliver to TechnipFMC the necessary IP which is held by the company and which relates to the Jack-up Business.
The business will be integrated into the TechnipFMC Surface Technologies segment and will include the transfer of key staff from Plexus. The business will continue to operate from the existing location in Dyce, Aberdeen.
Plexus’ CEO Ben Van Bilderbeek, said: “TechnipFMC is acquiring a business which has supplied a wide range of blue chip operators of the calibre of BP, Centrica, ENI, Maersk, Royal Dutch Shell, Statoil, and Total with wellheads for use on hundreds of wells worldwide and which already has a strong market reputation in the UK Continental Shelf and ECS, particularly for HP/HT applications. Going forward there are numerous opportunities for the application of POS-GRIP technology and encouragingly, as the recent contract win from Centrica for the supply of surface production application equipment demonstrates, we are already making progress in this regard.
“We look forward to working closely with TechnipFMC to ensure the earn-out period is as successful as possible for both companies and also under the collaboration agreement with the potential to further develop our existing POS-GRIP IP for applications outside of the Jack Up exploration business.”
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