Energy technology firm makes another acquisition
Houston-based Forum Energy Technologies announced this week that it had acquired England-based Moffat 2000 Ltd. The latter company is a leading manufacturer of subsea pipeline inspection gauge launching, receiving systems and subsea connectors.
According to a Houston Business Journal article, this is the third technology acquisition that Forum has made this year. Earlier, the energy company acquired pipe equipment manufacturer Blohm + Voss Oil Tools and made a joint purchase with Quantum Energy Partners of Global Tubing. All three opportunities are expected to generate $32 million per year in operating income, according to the news source.
The acquisitions are also likely designed to help Forum bounce back from lackluster second quarter earnings. The Journal reported that the company's shares dropped from 35 to 40 cents per share to between 32 and 34 cents per share.
Forum chairman and CEO Cris Gaut said in a statement that Moffat is a complementary addition to his company's subsea technologies' product offering.
"Moffat's products are key components in subsea pipeline infrastructure projects and are sold to first-tier subsea construction companies, which comprise the existing customer base of our remotely operated vehicle business," he said.
Moffat managing director John Thompson was also optimistic about the acquisition, saying that the move will help his business' global growth. Currently, Moffat delivers 80 percent of its equipment to Europe, the Middle East and Africa. Thompson said that he realizes there are untapped markets where Forum already has an established presence, such as the Gulf of Mexico, Southeast Asia and Brazil.
Additionally, the completed M&A activity will be beneficial to Moffat employees, Thompson said. The managing director explained that as Forum continues to grow, the opportunities will also improve for his workers.