Flotation Technologies Inc. (Biddeford, Maine), a world leader in the engineering, design and manufacturing of deepwater buoyancy and polyurethane elastomer systems, today announced that it will be acquired by Houston-based Deep Down Inc.
“As the increase in demand in the offshore oil industry increases, partnering with another company seemed only natural,” says Tim Cook, president, Flotation Technologies. “In 2007, the company saw record growth. Not only did we double our revenue, but the company relocated to a plant, twice the size of the previous one, doubling our staff and tripling capacity, primarily as a response to the unprecedented demand in the offshore oil industry.”
David Capotosto, executive vice president, Flotation Technologies, says, “The merger is aimed at increasing the market share in the offshore and oceanographic industries and acquiring new customers. Each company’s product offerings are a complement to the other and will help grow market segments and meet customer needs. Strategically the acquisition makes sense; the company will have a broader global footprint.”
Unaudited financial information provided by Flotation Technologies indicates that revenue for the last 12 months, ending March 31, 2008, was approximately $17.27 million, with a pretax of $4.84 million and EBITDA of $5.26 million, adjusted for certain nonrecurring expenses and a gain on sale of real estate assets. Financial results of operations for the years ended December 31, 2007 and 2006 will be presented when audits are finalized. The total price for the acquisition is expected to be approximately $23.3 million. Deep Down’s closing of the purchase of Flotation Technologies remains subject to several conditions including Deep Down’s obtaining financing for the payment of the purchase.
Flotation Technologies Inc., based in Biddeford, Maine, is a world leader in the engineering, design and manufacturing of deepwater buoyancy systems using high-strength FlotecT syntactic foams and polyurethane elastomers. Focused on the offshore oil, oceanographic, seismic and government markets, Flotation Technologies delivers world-class buoyancy products for a host of marine applications such as: distributed buoyancy for flexible pipes and umbilicals, drilling riser buoyancy modules, ROV buoyancy, QuickLocT cable floats, HardballT umbilical floats, FLOTECTT cable and pipeline protection, InflexT polymer bend restrictors and installation buoyancy of any size and depth rating. For more information, visit flotec.com.
Deep Down specializes in the provision of innovative solutions, installation management, engineering services, support services, custom fabrication and storage management services for the offshore subsea control, umbilical, and pipeline industries. The company fabricates component parts of subsea distribution systems and assemblies that specialize in the development of subsea fields and tie backs. These items include umbilicals, flow lines, distribution systems, pipeline terminations, controls, winches, and launch and retrieval systems, among others. Deep Down provides these services from the initial field conception phase, through manufacturing, site integration testing, installation, topside connections, and the final commissioning of a project.