TechnipFMC strikes £42.5m deal for Plexus’ jack-up business

Oilfield service giant TechnipFMC has struck a deal to buy Plexus Holdings’ Aberdeen-based jack-up applications business for up to £42.5million.

TechnipFMC said the business would become part of its surface technologies division and that “key” staff members from Plexus would make the switch.

The buyer also said the business, which focuses on wellhead exploration and services, would continue to operate from its location in Dyce.

Plexus will receive an initial cash consideration of £15million with an additional £27.5million payable dependent on future performance of the business.

The jack-up business contributed 99.7% of Plexus’ revenues for the year ended June 30, 2016.

Both sides have also agreed to work together to develop Plexus’ Pos-Grip wellhead technology for applications outside of jack-up exploration.

Pos-Grip has been used or ordered for hundreds of oil and gas projects globally.

Plexus’ shares were up 9% to 84p on the AIM as of noon today.

Plexus chief executive Ben Van Bilderbeek said: “We look forward to working closely with TechnipFMC to ensure the earn-out period is as successful as possible for both companies and also under the collaboration agreement with the potential to further develop our existing POS-GRIP IP for applications outside of the jack up exploration business.

“I will be working hard as CEO of Plexus with my team to grow the business and repeat the past success we have enjoyed in raising standards for high pressure/high temperature exploration wellheads in the wider energy sector, as well as focusing on generating shareholder value.”

Richard Alabaster, TechnipFMC’s president of surface technologies business, said: “I am very pleased that we have reached this agreement, which fits within TechnipFMC Surface Technologies’ strategy to extend and strengthen our position in exploration-drilling products and services while leveraging our global field presence. It also enhances TechnipFMC’s capability in HP/HT applications.”

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