Acquisition
January 09 2004 - 3:13AM
UK Regulatory
RNS Number:0406U
Expro International Group PLC
09 January 2004
09 January 2004
EXPRO INTERNATIONAL GROUP PLC
("Expro" or "the Group")
Acquisition Update
In line with its strategy of investment in technical innovation, Expro is
pleased to announce two recent acquisitions. Both of these technologies have
been developed over a period by their respective owners and are ready for
commercialisation. They will enhance the range of Well Performance offerings
from the Group.
Expro has acquired a wireless technology product and capability (including
intellectual property) from Flight Refuelling Ltd, a subsidiary of Cobham PLC
for #3.25m in cash, with additional deferred consideration of up to #5m tied to
revenues obtained over a fifteen year period. The acquired business has
developed an industry leading Cableless Telemetry System ("CaTS") which is
capable of transmitting data electromagnetically from downhole depths in excess
of 10,000 feet and is particularly suitable for brownfield applications. The
business provides Expro with 11 specialist development engineers, with expertise
in wireless data transmission, to supplement the Group's existing skills in
product development. In late 2002 testing of the technology was completed and in
the last 12 months four production tools have been successfully deployed in a
number of operating locations.
Expro is also pleased to announce the acquisition of the well tractoring assets
and technology of Houston based Smartract Inc, for US $1.35m in cash, with
potential deferred consideration of US $4m tied to revenues obtained over the
next thirteen years. The technology is represented by a hydraulically activated
tractor system which is used in conjunction with wireline to deploy data
gathering and other tooling in horizontal and high deviation wells. It has a
unique bi-directional ability that also allows it to perform in-well
manipulation of downhole tools. The business employs seven personnel and
generated turnover of approximately US $0.5m in the year to December 2003.
Both businesses are expected to deliver sustainable growth opportunities and
competitive advantage.
The development of Expro's Rigless Intervention System for subsea wells has
taken a significant step forward with the recent signing of a Development
Agreement with three of the world's leading deepwater field developers. A FEED
study will now be carried out by Expro's development team to evaluate the
feasibility and commerciality of the proposed system. Expro's investment in its
state of the art deepwater R&D facilities in Aberdeen will play a pivotal role
in the eventual introduction of this leading edge technology.
Graeme Coutts, Expro Group Chief Executive said: "Expro has a strong reputation
for delivering advanced technology to our clients. Aimed at operational
efficiency and cost reduction, all of the aforementioned technologies fit
perfectly within our strategy. The two acquisitions demonstrate Expro's ability
to identify, acquire and add value to small innovative businesses which can
benefit from our reputation and geographic reach."
- Ends -
For further information, please contact:
Expro International Group PLC 0118 959 1341
Graeme Coutts, Chief Executive
Colin Ainger, Executive Director
Weber Shandwick Square Mile 020 7067 0700
Mike Kirk or Rachel Taylor
This information is provided by RNS
The company news service from the London Stock Exchange
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