Hunting Plc, the international energy services group, has completed the acquisition of Enpro Subsea Ltd. on Feb. 21 for a total consideration of $33 million payable on completion, plus a potential maximum earn out of $3 million based on EBITDA performance in 2020.

The consideration payable is on a cash-free-debt-free basis and payable in cash and has been funded from Hunting’s existing cash resources. Enpro is being acquired from members of the Enpro management team and Energy Ventures Private Equity.

Enpro was founded in 2011 and since this time has developed leading subsea production technology that has been adopted by offshore operators within the global oil and gas industry. Enpro’s products focus on delivering production enhancing technologies and include flow access modules, flow intervention services and decommissioning. These products offer low cost, flexible field development solutions to clients including production and intervention modules to enhance recovery from oil and gas wells. The flow access module technology supports the use of standard subsea SPS hardware leading to shorter development timescales and quicker production of hydrocarbons.

Enpro’s products are protected by patents that focus on the application and methods of incorporating these products into the subsea system. To date, over 70 Enpro applications have been adopted in the North Sea, the Gulf of Mexico and West Africa.

Enpro’s business model is focused on technology and product development, with all manufacturing outsourced to third parties. It is the intention to bring much of this manufacturing in-house and utilize Hunting’s existing global manufacturing platform to commercialize further the technology across all of the group’s key regional operating hubs. In addition, Hunting’s broad customer base offers significant opportunities to extend Enpro’s current market reach.

Enpro’s head office is in Aberdeen, U.K., with subsidiaries in Ghana, Norway and the U.S. The business currently has a headcount of 40 personnel and it is anticipated that the senior management team will continue with Hunting.

Based on UK GAAP, in the year ended December 2019 Enpro generated revenue of $14.1 million and EBITDA of $3.4 million. And, Enpro had net assets of approximately $9.4 million, gross assets of $14.5 million and an order book of approximately $11 million.

Hunting PLC will be announcing its 2019 full year results, as planned, on February 27, 2020.

“The acquisition of Enpro further strengthens Hunting's subsea offering and adds a high technology product group to our portfolio. The offshore market continues to strengthen and we look forward to providing a wider technology offering to our customers who continue to seek lower cost, enhanced production and more efficient solutions to the production of oil and gas,” Jim Johnson, CEO of Hunting, said.