SBO acquires well completion specialist “Praxis Completion Technology”
· Acquisition of additional completion technology strengthens SBO’s positioning
· Transaction to close in the second half of 2023
Ternitz/Vienna, 1 June 2023. Schoeller-Bleckmann Oilfield Equipment AG (SBO) strengthens its market positioning in the well completion segment outside North America with the acquisition of Praxis Completion Technology FZCO. The Dubai-based company with branch in Saudi-Arabia is a leader in the manufacture of packers that isolate the annulus from the production tubing to allow for controlled production, thereby increasing the rate of production from the well. In the past fiscal year, which ended on 31 December 2022, Praxis Completion Technology generated sales of around MUSD 15 with 30 employees. The company will become a subsidiary of The WellBoss Company and will complement their product offering. The WellBoss Company has been a leader in the manufacture of well completion equipment for years.
The acquisition not only strengthens SBO's positioning in the Middle East, which is considered the market with the greatest growth momentum in the energy sector, but also adds an expedient technology to the Company's offering in the well completion segment. In addition, Praxis products will also be used for carbon capture & storage (CCS) applications in the future. This underpins SBO's Strategy 2030, in which ESG is firmly anchored.
Signing of the purchase agreement took place today. Closing is expected for the second half of 2023, subject to regulatory approvals. The purchase price for the acquisition of all shares in the company of MUSD 22 – of which 80 % is due at Closing and 20 % two years after Closing – will be increased by the results generated from 1 January 2023 to Closing, as well as working capital adjustments.
SBO’s CEO Gerald Grohmann: “In our Strategy 2030, we have set ourselves the clear goals of maintaining our market-leading position in our core business by continuing to invest in research & development and bolt-on acquisitions. At the same time, we are expanding our presence in the Middle East, which is an important market for our industry. The future applications of Praxis Completion Technology’s products for carbon capture and storage offer exciting opportunities to participate in this growing market and will help to reduce the global CO2 emissions.”
About SBO
SCHOELLER-BLECKMANN OILFIELD EQUIPMENT Aktiengesellschaft (SBO) is a globally operating group of companies and world market leader in the manufacture of high-alloy, non-magnetic stainless steels. The SBO Group is engaged in high-precision production of stainless steels as special components for the oil, gas and other industries by applying innovative and additive technologies. The SBO Group is equally recognized worldwide for its directional drilling tools and equipment for well completion. With its subsidiaries and more than 1,500 employees worldwide, the Group is successfully positioned in technologically demanding, profitable niches. The Group is headquartered in Ternitz, Austria. Making an active contribution to energy transition is a key element of the Group's Strategy 2030. More detailed information on the Strategy 2030 and sustainable management (ESG) is available in the Annual Report 2022 at https://www.sbo.at/publikationen.
Further inquiry note:
Andreas Böcskör, Schoeller-Bleckmann Oilfield Equipment
Phone: +43 2630 315 252
E-Mail: a.boecskoer@sbo.co.at
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