ChampionX Corp. plans to acquire artificial lift company RMSpumptools Ltd. from U.K.-based James Fisher and Sons Plc for £86 million (US$110 million). The purchase price is inclusive of net working capital adjustments.
RMSpumptools is anticipated to generate approximately US$65 million in 2024 revenues and approximately US$18 million in adjusted EBITDA.
The acquisition will be funded by cash on hand and ChampionX said it will impact the company’s 2024 return of capital framework. The company anticipated returning at least 60% of 2024 free cash flow to shareholders.
RMSpumptools designs, manufactures and delivers solutions from locations in the U.K., Saudi Arabia and the United Arab Emirates and sells in most oilfield markets worldwide. Approximately 80% of RMSpumptools’s revenues are from outside North America.
ChampionX said the integration of RMSpumptools technology will enhance its production and automation technologies portfolio and strengthen ChampionX’s presence and participation in a range of international markets including the Middle East, Latin America and global offshore developments.
RMSpumptools specializes in wellhead electrical penetrator and mechanical connector systems, completion systems and intervention tools and subsea connector systems for electrical submersible pumping applications.
"The acquisition of RMSpumptools is consistent 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," said Sivasankaran "Soma" Somasundaram, president and CEO of ChampionX.
Currently, the transaction is expected to close towards the end of the second quarter or beginning of the third quarter of 2024, following the receipt of customary regulatory and James Fisher and Sons shareholder approval.