Riverstone Holdings is selling well specialist Titan Group to British oil services firm Hunting in a $775 million deal, Reuters reported. Titan’s products and services are used to drill the horizontal wells that are used to pump oil and gas out of shale rocks, Reuters wrote.
(Reuters) – British oil services firm Hunting agreed to acquire U.S. well specialist Titan Group for $775 million in a deal which will boost its exposure to the fast-growing oil and gas shale markets in North America.
Hunting, whose equipment is used in the construction and maintenance of oil wells, said on Friday that the acquisition of Titan from energy-focused private equity firm Riverstone Holdings is expected to enhance underlying earnings in the first full financial year.
The company said it will pay for Titan from existing cash balances plus a new bank facility of 375 million pounds and using the proceeds of a placing, also announced on Friday, and representing around 9.9 percent of its existing share capital.
Advanced talks were underway to acquire other businesses worth up to 90 million pounds, said Hunting, adding that current trading was in line with its full-year expectations.
Titan’s products and services are used to drill the horizontal wells which are used to pump oil and gas out of shale rocks in North America, where there has been a boom in onshore drilling in recent years.
Shares in Hunting closed at 720 pence on Thursday, valuing the company at about 1 billion pounds ($1.6 billion). ($1 = 0.613 British Pounds)
(Reporting by Sarah Young; Editing by Matt Scuffham)