Expro International Group PLC
1 February 2000
ACQUISITION IN THE USA
Expro International Group PLC ('Expro'), the
international oil field services company, announced today
the acquisition of Tripoint Inc. ('Tripoint'). Tripoint
is the leading provider of well completion services in
the Gulf of Mexico for an initial cash consideration of
$30 million (£18.4m), with a deferred payment of up to $5
million in cash and ordinary shares based on performance
over the next two years. Tripoint headquarters are in
Houston, Texas.
Key Points
* The acquisition of Tripoint represents a significant
further strengthening of Expro's position in the
important Gulf of Mexico market, the company has strong
market shares and extensive customer networks in the
buoyant domestic and growing deepwater markets.
* The acquisition complements Expro's existing Cased
Hole production enhancement business and will enable
Expro to offer its oil industry clients a broader range
of services in the North American market.
* Tripoint has a strong base of technology development
which Expro will enhance through its business stream
structure and exploit through its geographic
distribution.
* The acquisition is expected to be EPS enhancing
before goodwill amortisation in the year ended 31 March
2001 and broadly neutral in the current financial year.
In connection with the acquisition, Expro is increasing
its debt facilities from £45 million to £70 million.
John Dawson, Chief Executive of Expro, said:
'The acquisition will enable Expro to position itself to
continue its long term growth strategy. The business
expands Expro's Cased Hole service range and provides a
real foothold in the developing market in the Gulf of
Mexico, providing pull through benefits for other product
lines, not only in the Gulf but also in other overseas
markets'.
Background Information
Tripoint
Tripoint is being acquired for an initial cash
consideration of $30 million (£18.4 million), including
the repayment of $10 million (£6.1 million) of
outstanding debt. Dependent on the future performance of
Tripoint, additional consideration of up to $5 million
(£3.1 million) is payable in a mixture of cash and
approximately 300,000 new Expro ordinary shares over two
years. In the year ended 30 June 1999, Tripoint had
turnover of $14 million (£8.6 million), the audited net
assets of Tripoint were ($0.99) million ((£0.61)
million), with a net loss of $3.12 million (£1.9
million).
Tripoint is the largest independent provider of Tubing
Conveyed Perforating services (TCP) in the US. It
operates primarily in the Gulf of Mexico and Western
Canada. It has approximately 70 employees.
Tripoint performs approximately 25-30 per cent of the TCP
operations occurring in the Gulf of Mexico, with around
90 per cent of revenue coming from this service. In
addition to its core TCP and associated Drill Stem
Testing (DST) services, Tripoint recently gained access
through licensing agreements with Marathon and Corelab to
new products and services some of which have been further
developed with Tripoint in this rapidly developing
market. These services include: Casing Conveyed
Perforating (CCP) systems, StimGun, EXCAPE, POWR*PERF and
the Circulating Perforation Gun.
Expro will integrate the Tripoint business as part of its
Cased Hole Services range, thereby offering clients a
greater range of services and reducing dependence on
other oil service companies. Tripoint's operations in
Canada will provide Expro with operations and employees
on the ground which will facilitate Expro's participation
in Canadian oil and gas developments.
Enquiries:
Expro 0118 959 1341
John Dawson, Chief Executive
Eric Woolley, Finance Director
Cazenove 0171 588 2828
Mike Kirk
Ludgate Communications 0171 253 2252
Denise Peplow/Claudine Cartwright
Notes For Editors
Expro is one of the UK's leading independent suppliers of
oilfield services. It provides a closely related range of
specialised services to assist operators in the upstream
oil and gas industry to explore for, appraise, develop
and produce hydrocarbon reserves.
The products and services offered by Tripoint allow E&P
companies to decrease drilling costs and increase
production efficiencies. Tripoint is a world leader in
well completion technology, with services such as casing
conveyed perforating and one-trip systems. Tripoint
offers a complete offshore perforating package, including
guns, tools, test tools, packers, gauges and surface
equipment. Their simplicity and minimal intervention is
particularly well suited to deep-water developments.
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