ChampionX, a prominent provider of oilfield technology and services, has announced its intentions to acquire RMSpumptools for approximately £86m ($108.7m). RMSpumptools is renowned for its expertise in wellhead electrical penetrator and mechanical connector systems, completion systems, intervention tools, and subsea connector systems in the oil and gas industry.
As part of the energy division of James Fisher and Sons, RMSpumptools has operational bases in various regions, including Africa, the Americas, Asia-Pacific, Europe, the Middle East, and the UK. Notably, a substantial 80% of the company’s revenues are derived from markets outside North America.
ChampionX anticipates significant benefits for its customers through this acquisition. By integrating RMSpumptools, the company aims to enhance its product offerings and extend its international reach, particularly in the Middle East, Latin America, and various offshore markets globally. The company projects that the acquisition will contribute approximately $65m in revenues and around $18m in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) by 2024.
Sivasankaran Somasundaram, President and CEO of ChampionX, stated, “The acquisition of RMSpumptools aligns with our capital allocation framework, which includes bolt-on technology acquisitions. RMSpumptools’ highly complementary portfolio aligns seamlessly with ChampionX’s existing production and automation Technologies offerings, with minimal product overlap.” He further added, “Moreover, the acquisition of RMSpumptools expands our growth opportunities, with a focus on expanding our presence in the Middle East and offshore markets. Their technologies and expertise complement our own, enabling us to deliver even greater value to our customers and stakeholders.”
The transaction is expected to be finalized towards the end of the second quarter (Q2) or early in Q3 2024, subject to fulfillment of closing conditions. This move follows ChampionX’s recent acquisition of ALP, a company specializing in advanced analytics solutions for oil and gas production performance enhancement.
This acquisition underscores ChampionX’s commitment to strengthening its position in the global oil and gas industry, enhancing its capabilities, and providing added value to its customers across different regions. With the integration of RMSpumptools, ChampionX is poised to further expand its footprint and market presence, offering a more comprehensive range of solutions to its clients around the world.