Hunting is acquiring Dearborn from a company owned by three individual investors.
The consideration paid is on a cash free debt free basis and will be funded from Hunting’s existing cash and bank borrowing facilities, Hunting said.
Dearborn manufactures high precision tubular and rotating metal components, which are used primarily for MWD/LWD applications in the oil and gas sector, in addition to products for the aerospace and power generation industries.
The acquisition of Dearborn is expected to be earnings enhancing in the first full financial year before acquisition costs and normal acquisition adjustments such as fair value adjustments and the amortisation of intangible assets.
Hunting CEO Dennis Proctor said Dearborn’s expertise in manufacturing close tolerance parts for the oil and gas sector will enable the company to expand its manufacturing offering and continue.
