OIL services firm Expro has sold its connectors and measurements arm to Siemens for almost £400 million after receiving a number of unsolicited bids.
Expro, which has its European headquarters in Aberdeen and employs about 500 people in the city, yesterday confirmed it was selling some of its operations to the German conglomerate, as reported in The Scotsman yesterday.
The division being sold designs and engineers underwater components such as cable connectors, sensors and measuring devices which can operate thousands of metres below the surface of the ocean.
It employs 450 people at sites in Ulverston in Cumbria, Brazil, Malaysia, Norway and the US, and generated sales of £75m last year.
Expro is owned by private equity group Candover, which got into financial difficulties after buying the company for £1.8 billion at the height of the oil market.
Chief executive Charles Woodburn said he was “very pleased” with the sale. The group will use the money to pay down debts and fund the growth of its core business of providing products that measure and improve the flow from oil and gas wells.
The company revealed that it had received several “unsolicited” indications of interest for the connectors and measurements arm last year, and decided on the sale after exploring the alternatives.
The deal still needs the approval of regulators but is expected to complete in May.
Adil Toubia, who heads the oil and gas division at Siemens Energy, said the acquisition moved the firm into the market for subsea power grids, an area likely to see considerable growth.
He added: “We can now enhance our know-how in electrification and our research and development activities with the newly acquired skills.”
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