ChampionX Corp. plans to acquire artificial lift company RMSpumptools Ltd. from U.K.-based James Fisher and Sons Plc for £86 million (US$110 million). The purchase price is inclusive of net working capital adjustments.
RMSpumptools is anticipated to generate approximately US$65 million in 2024 revenues and approximately US$18 million in adjusted EBITDA.
The acquisition will be funded by cash on hand and ChampionX said it will impact the company’s 2024 return of capital framework. The company anticipated returning at least 60% of 2024 free cash flow to shareholders.
RMSpumptools designs, manufactures and delivers solutions from locations in the U.K., Saudi Arabia and the United Arab Emirates and sells in most oilfield markets worldwide. Approximately 80% of RMSpumptools’s revenues are from outside North America.
ChampionX said the integration of RMSpumptools technology will enhance its production and automation technologies portfolio and strengthen ChampionX’s presence and participation in a range of international markets including the Middle East, Latin America and global offshore developments.
RMSpumptools specializes in wellhead electrical penetrator and mechanical connector systems, completion systems and intervention tools and subsea connector systems for electrical submersible pumping applications.
"The acquisition of RMSpumptools is consistent with our capital allocation framework which includes bolt-on technology acquisitions. RMSpumptools’ highly complementary portfolio aligns seamlessly with ChampionX's existing production and automation technologies offerings, with minimal product overlap," said Sivasankaran "Soma" Somasundaram, president and CEO of ChampionX.
Currently, the transaction is expected to close towards the end of the second quarter or beginning of the third quarter of 2024, following the receipt of customary regulatory and James Fisher and Sons shareholder approval.
Recommended Reading
Williams Files for Temporary Permit to Keep $950MM Project Online
2024-09-11 - A temporary emergency certificate is necessary for Williams to continue operating the Regional Energy Access Project after the Court of Appeals shot down an original FERC certificate in July.
FERC Sides with Williams Over Energy Transfer in Pipeline Dispute
2024-09-30 - The Federal Energy Regulatory Commission has declared that Williams’ disputed Louisiana Energy Gateway project is a gathering network, not a transport line.
FERC Chair: DC Court ‘Erred’ by Vacating LNG Permits
2024-09-20 - Throwing out the permit for Williams’ operational REA project in the mid-Atlantic region was a mistake that could cost people “desperately” reliant on it, Chairman Willie Phillips said.
Uinta Railroad Up for Review as Supreme Court Term Begins
2024-10-03 - Court analysts say a decision on the proposed Uinta Basin railway, coming next year, could have a major impact on the energy industry.
Matterhorn NatGas Pipeline Ramps Up Faster Than Expected
2024-10-22 - The Matterhorn Express natural gas pipeline has exceeded expectations since its ramp up on Oct. 1 for deliveries to interstate systems owned by Kinder Morgan, Williams and Enbridge.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.