MPO Sold to AFGlobal
Kristiansand, Norway, July 14, 2016 – MHWirth has reached an agreement with AFGlobal Corporation to divest its Managed Pressure Drilling (MPD) business through the sale of its subsidiary, Managed Pressure Operations (MPO). The transaction will be settled through a cash consideration of USD 10 million on closing, combined with an earn-out element, which could potentially reach USD 65 million over the next six years. The agreement ensures the ability for MHWirth to provide Integrated MPD drilling packages to the market in the future.
Finn Amund Norbye, CEO of MHWirth comments: “We are impressed with what the MPO organization has accomplished over many years, building up market-leading technologies and commercial offerings to build safety and efficiency standards within drilling operations. The combination of MPO and AFGlobal’s MPD business creates a compelling combination and we are pleased to have reached an agreement that secures MHWirth with a portion of the future value creation.”
Mr Curtis Samford, President and CEO of AFGlobal adds: “MPO is a valuable addition to our portfolio of technologies and solutions for the drilling industry. We are pleased to add the engineering strength and depth of the MPO team to AFGlobal’s Advanced Drilling Systems group. Leveraging our combined expertise and unique strengths will enable meaningful improvements to the quality and modularity of the managed pressure drilling environment.”
The transaction is expected to be completed in Q3 2016.
MHWirth is a leading global provider of first-class drilling solutions and services designed to offer our valued clients with the safer, more efficient and reliable alternative. Our company vision is centered on an unparalleled commitment to quality and yielding economic advantages for our customers and stakeholders.
MHWirth has a global span covering five continents with offices in 16 countries. Our 2000 dedicated professionals consistently strive to enhance customer satisfaction and form meaningful collaborations by creating a personalized experience. www.mhwirth.com
MPO is an oilfield services company supplying industry leading Managed Pressure Drilling (MPD) equipment, know how, and experience. MPO provides robust and cost effective solutions for continuous circulation, riser gas handling, kick detection and management, as well as a variety of services including Front-End Engineering Design. (FEED), well planning and simulation, HAZOP, HAZID, and Quality, Health, Safety, and Environment (QHSE) management for all types of drilling projects. With offices in Texas, Singapore, UAE, and Indonesia, MPO supports drilling operations ranging globally from basic land rig operations to deepwater High-Pressure, High-Temperature (HPHT) projects. http://www.managed-pressure.com/
AFGlobal Corporation is an oil and gas OEM specializing in technology, products, and services with fully-integrated manufacturing capabilities to clients around the world. We align well-established precision engineering with industry-leading innovation. AFGlobal also provides equipment and capabilities to the general industrial, aerospace and power generation industries, offering a broad range of both highly-engineered and general forged products, as well as complementary aftermarket services. Headquartered in Houston, Texas, the Company delivers value through more than 20 facilities worldwide. www.afglobalcorp.com.