28 Apr 2011 11:30
28 April 2011
Fenner PLC ("Fenner" or the "Company")
Fenner acquires Multiseals Pte Limited ("Multiseals")
Fenner is pleased to announce that its wholly owned subsidiary Fenner Singapore Pte Limited has today acquired 100% of the share capital of Multiseals which is a privately owned company based in Singapore. Total consideration for the acquisition is Singapore $14.425 million of which $3.6 million will be satisfied by the issue of 480,367 shares in the Company. Application for listing of the shares will today be submitted to the Council for the Stock Exchange.
Multiseals manufactures and distributes seals to the oil and gas industry in the Asia-Pacific Region. This strategic acquisition will allow Fenner Advanced Sealing Technologies ("FAST") to exploit the expanding Asian aftermarket for its Oil & Gas products.
The Asia-Pacific Oil & Gas market has a history of strong drilling and completion activity to support escalating regional energy demands and is estimated to be growing at a rate of 11% per annum. Many of the Fenner Oil & Gas customers have established manufacturing and service facilities in Singapore. This acquisition enables Fenner customers to purchase custom- manufactured products locally. Multiseals will give FAST instant recognition in the region and a platform for growth.
As part of the growth strategy, Multiseals' offerings will expand to include the full range of the oilfield products supplied by CDI Seals® in Houston, Texas, USA, a part of FAST. CDI Seals® and Multiseals have previously partnered to provide engineered designs, materials, and solutions to meet customer specific requirements. Additionally, the partnership combines both companies' custom moulding and high performance machining capabilities. Multiseals will also manufacture and support the recently launched Tuff Breed® range of oilfield expendables which includes well service packing ("WSP") products specifically designed for hydraulic fracturing and pressure pumping operations in oil & gas developments. Overall this is a very exciting opportunity for Fenner and indeed for Multiseals.
Fenner is a world leader in the field of reinforced polymer engineering. Products include conveyor belting for the mining and power generation markets; precision motion control products for the office automation and mechanical equipment markets; sealing products for the mining, hydraulics and energy industries; technical fabrics and polymer products for the medical device industry.
For further information please contact:
Fenner PLC
Nicholas Hobson, Chief Executive 01482 626501
Richard Perry, Finance Director
Weber Shandwick Square Mile
Nick Oborne/ Stephanie Badjonat 020 7067 0700