Prysmian Group acquires Gulf Coast Downhole Technologies

Prysmian Group, which is active in the energy and telecom cable systems industry, has signed an agreement to acquire 100% of the privately held Gulf Coast Downhole Technologies (GCDT) for an initial consideration, subject to adjustment, of approximately $45 million in cash. The transaction involves an earn-out determined on an average combined EBITDA in the next three years and for a maximum earn-out payment of about $21 million.

Based in Houston, GCDT is active in the design and supply of innovative downhole equipment for the oil and gas industry, with a turnover of approximately $34 million in 2014. GCDT products are installed in oil and gas wells around the world and consist of integral components in the systems that provide downhole control, injection, flow assurance and monitoring. GCDT’s customer base covers a range of oilfield service companies including Halliburton, Baker Hughes, Weatherford, and Schlumberger. GCDT products are ultimately installed in completions operated by major oil and gas producers like Chevron, ExxonMobil, and Shell around the globe.

GCDT fits fully into the Group’s expansion strategy in the business of subsea umbilicals, risers, and flowlines (SURF), and complements its Draka-branded DHT offered product range. The acquisition of GCDT allows a further increased differentiation of the product offer, namely thanks to an enhanced portfolio of protectors and the patented Safety-Strip technology for faster and safer installation of intelligent completion systems. With the acquisition of GCDT, the Prysmian Group, through its brand Draka, will grow closer to its customers by shifting from a pure subcomponent supplier to offering a suite of package solutions to its service sector clients.

In the last years, Prysmian Group has been continuously investing to expand its presence in the SURF business. Headquartered in Houston, the Group’s SURF business can now count on new dedicated production facilities in Brazil and North America and on commercial offices in the Middle East, Far East, and Europe. Prysmian Group can offer a range of products and services, including umbilicals, risers, flowlines, and downhole technologies (DHT) perfectly integrated with the company’s core business of power and telecommunications cables.

The Group supplies complete DHT solutions globally in the oil and gas industry. Prysmian Group’s Draka-branded DHT business relies on production facilities in Bridgewater, New Jersey, and North Dighton, Massachusetts, and on a range of products including tubing encapsulated cable (TEC) solutions, specialty tubing, and specialty optical fiber-sensing cables.

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