Aberdeen firm RMSpumptools (RMS) is being taken over by US-based oilfield technology company ChampionX in a deal worth £90 million.
RMS has its headquarters in Wellheads Industrial Estate in Dyce.
It designs and manufactures completion systems and components for electrical submersible pump applications in the oil and gas industry.
Currently owned by James Fisher and Sons, the business employs 130 people – including about 40 in Aberdeen – across operations in the UK, Saudi Arabia and the United Arab Emirates.
It will be integrated into ChampionX’s production and automation technologies division.
Aberdeen firm’s top bosses staying
RMS’s management team includes managing director Doug Harwell, finance director Martin Marsh and sales director Ted Boueri. They plan to stay on after completion of the sale.
Cumbria-based Fisher said the sale was line with its strategy to “simplify and focus” its portfolio.
Sale is ‘significant step’ in Fisher’s business strategy
Fisher chief executive Jean Vernet explained: “The sale of RMS marks a significant step in simplifying our portfolio to further strengthen our financial position and create a platform for sustained recovery.
“We believe the transaction represents good value for our shareholders, reflecting RMS’s strong performance in recent years.
“The disposal allows James Fisher to continue its strategy of focusing and simplifying the group, investing in the core portfolio and innovative new technologies that will deliver future growth.”
Mr Vernet added: “We would like to thank the whole RMS team for their hard work and dedication to James Fisher over so many years.
“This is a great opportunity for ChampionX to build on RMS’s success and for our colleagues at RMS to benefit from the focus that this change of ownership will bring.”
The sale of RMS marks a significant step in simplifying our portfolio.”
Last year Fisher launched an updated strategy aimed at improving financial resilience, reducing borrowing costs and providing funding capacity for future growth investment.
The sale of RMS is expected to complete early in the second half of 2024. This is subject to its approval by Fisher’s shareholders, merger control clearance by Saudi authorities and certain other conditions.
RMS turned over £43m last year
Estimates for last year suggest RMS generated revenue of £43m, earnings before interest, taxes, depreciation, and amortisation of £12m and operating profits of £11m.
As of December 31 2023, RMS had total assets of around £26m.
Fisher said its net proceeds from the sale would likely total about £83m after taking into account “cash-like and debt-like items” and estimated transaction costs.
Who are ChampionX and do they already have a presence in Aberdeen?
ChampionX is headquartered in Woodlands, Texas.
It describes itself as “a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world”.
The group employs more than 7,300 people across operations in 60-plus countries.
Its UK locations already include a base in Aberdeen, on Peterseat Drive in Altens.
How old is RMSpumptools?
RMS was created in 2009 through a merger of two Fisher-owned companies, Pumptools and Remote Marine Systems. Fisher had snapped up Remote Marine Systems in 2004, as part of a £7.3m acquisition of three businesses. Pumptools was acquired three years later, for £7.7m.
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