Enersol acquires majority stake in NTS AMEGA, strengthening position in oil, gas sector
Date
7/16/2024 8:39:25 AM
(MENAFN) ADNOC drilling and Alpha Dhabi Holding announced that their joint venture, Enersol, has agreed to acquire a 51 percent majority stake in NTS AMEGA ("NTS") for approximately $58 million. This follows Alpha Dhabi's October 2023 announcement of its acquisition of the same stake in NTS for the same value. The completion of this deal is contingent upon obtaining necessary regulatory approvals and final purchase price adjustments.
NTS is a prominent global company specializing in the manufacturing, repairing, and leasing of advanced equipment for the oil and gas sector. The company operates from multiple locations, including its headquarters in the United Arab Emirates, as well as in the United States, Canada, Saudi Arabia, Singapore, and Norway. NTS offers solutions for technically complex operations in the drilling industry, aimed at improving efficiency and reducing costs. Their products include heavy-duty rotary heads, measuring and logging probes, conveyors and accessories, and subsea and offshore drilling and processing tools and systems. They also provide specialized repairs to extend the life of measuring and logging tools, non-magnetic drilling probes, and other drilling accessories.
For the fiscal year 2023, NTS reported strong financial results with revenues exceeding $120 million, a robust EBITDA margin, and free cash flow surpassing 10 percent. This acquisition represents a significant investment opportunity for Enersol shareholders, given NTS's solid earnings and strong cash flow.
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