Hunting PLC, the international energy services group, has completed its acquisition of the business and assets of RTI Energy Systems Inc. for $12.5 million cash from Arconic Inc., an Alcoa spin-off that plans to split into two separate companies. The transaction gives London-headquartered Hunting an enlarged product offering into the recovering deep water offshore market and meets a strategic goal of targeting investments in differentiated technologies.
The purchase price was funded from Hunting’s existing cash resources.
RTIES operates in Houston and currently employs 21 personnel. Key members of the senior management team are expected to continue with Hunting.
The manufacturer of production riser technologies for deep water applications is currently operating at a loss, as the global offshore drilling market continues its recovery and return to growth. However, given RTIES’s product portfolio and market position, management is optimistic of securing market opportunities to deliver returns going forward.
Hunting values RTIES’s net assets at approximately $13 million. In the calendar year 2018, RTIES recorded revenues of $7.1 million, which generated an operating loss. Historically RTIES has generated profits at good margins, and in 2014 and 2013, RTIES recorded revenues of $49.2 million and $85.5 million, respectively.