FES acquisition boosts group's subsea portfolio

OFFSHORE engineering firm FES International is to become part of multi-national oil and gas industry supplier Hunting after being acquired in a £50m cash deal.

- TOM KEIGHLEY Business writer [e-mail]

The more than 20-year-old Ashington business, founded by directors Rob Anderson and Ian Latimer, will become part of the London-based $1.5bn revenue group which operates from 11 countries.

Hunting said the acquisition would boost its deepwater and ultra deepwater capabilities, bringing FES' subsea fluid transfer technologies to its customer base.

Announcing the deal to shareholders, Hunting pointed to FES' potential to grow internationally, particularly in locations such as South East Asia, the US, West Africa and Brazil. The acquisition is expected to grow Hunting's earnings in its first full financial year of ownership, before acquisition costs and normal acquisition adjustments such as fair value adjustments and the amortisation of intangible assets.