Oceaneering International, Inc. (NYSE:OII) has entered into a definitive purchase agreement to acquire Norse Cutting & Abandonment AS (NCA), for approximately $60 million. The purchase is expected to close by March 31, 2011.
NCA is an oilfield technology company that specializes in providing subsea tooling services used in the plugging, abandonment, and decommissioning of offshore oil and gas production platforms and subsea wellheads. In addition, NCA performs specialized maintenance and repair services on Norwegian offshore production platforms. For the year 2010, NCA generated total revenue of approximately $56 million, split almost evenly between the North Sea and the U.S. Gulf of Mexico (GOM).
Since its inception in 1999, NCA has designed, developed, and placed into service innovative tooling solutions such as an internal multi-string casing cutting system, a wellhead removal tool that includes cutting capabilities, and tools for removing single and multiple conductor pipes. NCA is currently engaged in projects to develop new tooling technology to serve the emerging rigless subsea plug, abandonment, and decommissioning market.
T. Jay Collins, President and Chief Executive Officer, stated, "This acquisition is consistent with our strategy to expand our subsea business. It will increase our subsea tooling product line and enable us to provide some tooling as a service line, as we do with our installation, workover, and control systems. It will also enhance our ability to participate as a subcontractor in the plug, abandonment, and decommissioning market both in the North Sea and in the GOM.
"We intend to retain key NCA management and the qualified work force as we endeavor to explore growth opportunities and realize facility cost savings. We are not changing our current annual 2011 EPS guidance range of $3.45 to $3.75 as a result of this acquisition."