2010-10-05-2010-05-05

Amended value of deal to to buy buoyancy and insulation products service company that focuses on deepwater applications.

Deep Down Inc., Houston, (OTCBB: DPDW) has amended its purchase agreement with privately-held, Avon, Mass.-based Cuming Corp.

The deal value has been increased from $37 million in cash and the assumption of $13 million in debt to a cash payment of $48.25 million plus or less an amount for net customer deposit assets or net customer deposit liabilities, respectively.

Cuming's buoyancy and insulation products service a wide range of deepwater applications and complement Deep Down's Flotation Technologies subsidiary, which produces syntactic foam products for the oil and gas sector.

In 2009, Cuming generated revenue of $73 million and gross profit of $15 million. As of Mar. 31, the business' contracted backlog and signed letters of intent represent approximately $138 million and $32 million of orders, respectively.

The amendment also provides an extension of the exclusivity period and the date on which Deep Down or the selling stockholders may terminate the purchase agreement until Oct. 31.

Deep Down chief executive Ronald E. Smith says, "By combining our complementary technologies and customer bases, Deep Down is well positioned to capture a substantial share of the growing markets for deepwater buoyancy and subsea insulation."