UK-based energy services group Hunting has acquired the business and assets of RTI Energy Systems (RTIES), which delivers production riser technologies for deep water applications within the oil and gas industry.
As a part of the deal, Hunting paid $12.5m in cash from its existing resources as consideration.
Based in Houston, Texas, RTIES is an operating subsidiary of lightweight metals engineering and manufacturing company Arconic.
Its product portfolio includes titanium stress joints as an economical alternative to flexible joints and steel tapered stress joints.
The company also provides inspection and maintenance services for its clients, as well as fabrication and precision machining of components used in the oil and gas industry.
Most of its businesses are located on the Gulf of Mexico where it has supplied its products for multiple offshore projects in the region.
Currently, it employs 21 people in its Houston office.
Hunting chief executive Jim Johnson said: “Given the new offshore deep water projects being commissioned within the US, Brazil and Guyana, RTIES, which will sit alongside and complement our subsea operations, will provide Hunting with an enlarged product offering into the recovering deep water offshore market.
“The transaction also delivers on our stated strategic goal of targeting investments in differentiated technologies to enhance our value proposition for the offshore oil and gas industry.”
RTIES has net assets of approximately $13m. Based on US GAAP management accounts, RTIES recorded revenues of $7.1m last year incurring an overall operating loss.
According to Hunting, key RTIES senior management team members are expected to continue with the combined company.
