Oilfield services company Archer Limited has acquired Aberdeenshire-based firm Romar-Abrado, which offers services to the plugging and abandonment market.
The acquisition is based on an enterprise value of USD 8 million, plus an earn-out pending trading performance over 2023 to 2025.
The acquisition is conducted on a debt-free basis and financed by available cash at hand.
"Romar-Abrado offers advanced milling and SWARF handling services to the global Plug and Abandonment ("P&A") market. Its combined approach and first-class operating knowledge provide innovative technologies through integrated milling and SWARF handling services to deliver permanent, verifiable, and emission-free well barriers and highly predictable alternative zonal isolation P&A solutions," Archer said of the newly bought company.
Romar-Abrado employed 50 people with a revenue of approximately $10 million in 2021.
Dag Skindlo, CEO of Archer: "We are pleased to announce the investment in Romar-Abrado, continuing our growth within our well services segment. The acquisition is another value-creating investment which expands our capabilities within workover operations and well abandonment. Romar-Abrado fits well with our strategy for brownfield and P&A. We expect activity to increase within these markets going forward as fundamentals and outlook remain strong. In addition, the transaction will contribute to the acceleration of our international expansion within the well services segment."
Nicholas Pantin, VP Archer Oiltools: "We are pleased to welcome the Romar-Abrado team to Archer. The Romar-Abrado organization will further strengthen our team and product portfolio. Oiltools has over the last few years developed a heavy intervention service offering with broad applications within slot recovery and well P&A. Our services have been developed around steel retrieval and steel recovery as well as establishing barriers through plugs and annular remediation. Technologies around steel removal through milling and section milling will allow Archer to offer end to end solutions.
The acquisition of Romar-Abrado gives us a significant leap forward and will contribute to future developments. We are looking forward to advancing our product and solution offering together with the Romar-Abrado team, as we seek to bring more value to our clients' workover and intervention programs."
Jason Broussard, CEO of Romar-Abrado: "We are happy to join forces with Archer to further develop and broaden our products and services in Romar-Abrado. Archer is a great fit for the Romar -Abrado business with their global footprint and service offering within workover and abandonment."
Archer said the acquisition was accretive to Archer's key financial ratios. Based on this acquisition and current trading, Archer increased its financial guidance for 2023. Its guidance for 2023 EBITDA is lifted to 20-25% above 2022 levels.