Energy services provider Hunting plc (HTG.L) Monday announced the acquisition of Innova-Extel Acquisition Holdings Inc., a supplier of harsh environment electronics technology to the global energy industry, for a cash consideration of US$125 million. The acquisition is expected to add a significant element to Hunting's Well Construction portfolio.
Hunting is acquiring Innova-Extel from American Capital, Ltd. (ACAS) certain American Capital affiliates and senior management. The company noted that following completion of the acquisition, the senior management will continue to be involved in the business.
The consideration, which will be paid on completion, will be reduced or increased by any debt or cash respectively remaining in the business on the date of completion. Before taking account of related acquisition costs, it is expected the acquisition will be earnings enhancing in 2010.
The net assets and gross assets of Innova-Extel at December 31, 2009 were US$55.3 million and US$119.8 million respectively.
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