LONDON, UK: James Fisher and Sons plc (FSJ.L) has entered into an agreement for the sale of the entire issued share capital of RMSpumptools Limited (RMS) to ChampionX UK Limited, a wholly-owned subsidiary of ChampionX Corporation for a total enterprise value of £90 million. It is in line with James Fisher’s strategy to simplify and focus its portfolio through the sale of non-core assets.
The disposal value implies a multiple of approximately 7.4 times RMS’s estimated EBITDA for the 12-month period ended 31 December 2023. After taking into account cash-like and debt-like items and estimated transaction costs, the net proceeds are expected to be approximately £83 million in cash, subject to certain customary closing adjustments.
The net proceeds will be used to reduce leverage and strengthen the Group’s balance sheet. The disposal is expected to support a reduction in leverage towards a target range of 1.0 to 1.5 times Net Debt to EBITDA.
While RMSpumptools is a leader in its markets, it is a product business operating in the oil and gas industry that has minimal synergies with the rest of the Group and does not strongly align with James Fisher’s strategy of focusing on maritime services to its core Energy, Defence and Marine Transport markets.
The transaction is expected to complete early in H2 2024, subject to approval by James Fisher’s shareholders, merger control clearance from the Saudi Arabian General Authority for Competition and certain other conditions.
Jean Vernet, Chief Executive Officer of James Fisher, said: “The sale of RMSpumptools marks a significant step in simplifying our portfolio to further strengthen our financial position and create a platform for sustained recovery. We believe the transaction represents good value for our shareholders, reflecting RMS’s strong performance in recent years. The disposal allows James Fisher to continue its strategy of focusing and simplifying the Group, investing in the core portfolio and innovative new technologies that will deliver future growth.
“We would like to thank the whole RMS team for their hard work and dedication to James Fisher over so many years. With its business portfolio, this is a great opportunity for ChampionX to build on RMS’s success and for our colleagues at RMS to benefit from the focus that this change of ownership will bring.”