LONDON: Hunting PLC (LSE: HTG), a precision engineering group, announced Monday it has acquired the entire issued share capital of Flexible Engineered Solutions (FES) Holdings Limited for £50 million in cash. The deal, completed on a cash-free, debt-free basis, includes customary post-completion adjustments.
The acquisition supports Hunting’s 2030 growth strategy, expanding its offshore and subsea capabilities in deepwater and ultra-deepwater markets. FES, based in Ashington, Northumberland, specializes in proprietary subsea fluid transfer technologies for the oil, gas and renewable energy sectors.
Strategic Benefits
- Technology Expansion: FES brings proprietary fluid transfer solutions used in floating production storage and offloading vessels (FPSOs) and subsea distribution systems (SDSs), complementing Hunting’s existing subsea businesses.
- Global Growth Potential: Hunting plans to leverage its international footprint to expand FES’s presence in key markets, including Brazil, Southeast Asia, the U.S. and West Africa.
- Financial Impact: The deal is expected to boost Hunting’s earnings in the first full financial year and enhance EBITDA margins.
FES reported unaudited 2024 revenue of £31.3 million and adjusted EBITDA of £6.7 million under IFRS 16 accounting standards. The company’s order book at completion stood at £11.8 million, with a pipeline exceeding £100 million.
FES’s senior management will remain with Hunting for at least 12 months post-acquisition. The business will integrate into Hunting’s Subsea Technologies division, led by Managing Director Dane Tipton.
“FES strengthens our subsea portfolio with high-margin, mission-critical technologies,” said Hunting CEO Jim Johnson. “Their expertise aligns with our strategy and offers significant cross-selling opportunities.”
Hunting, which funded the deal from existing cash reserves, reported approximately $40 million in net cash post-acquisition. The company said it will review its capital allocation policy and provide updates in the coming weeks.
FES operates from a 35,000-square-foot facility in the U.K. and employs 46 workers. Its products include diverless bend stiffener connectors, fluid transfer swivels and subsea control panels, serving clients in the Gulf of Mexico, West Africa and South America.
The acquisition follows Hunting’s September 2023 announcement targeting expansion in subsea energy equipment.