Singapore -- Fenner plc's subsidiary Fenner Singapore Pte Ltd has bought Singapore-based seal maker and distributor Multiseals Pte Ltd for Sing $14.425 million ($11.8 million). $3.6 million of the purchase price will be satisfied issuing 480 367 shares in the company.
Multiseals offers seals for the oil and gas industry in the Asia-Pacific region in a wide variety of plastics and elastomers, including urethanes.
Fenner said this strategic acquisition will allow its Fenner Advanced Sealing Technologies (FAST) business to exploit the expanding Asian aftermarket for its oil & gas products.
In Asia-Pacific, the oil & gas market has a history of strong drilling and completion activity to support escalating regional energy demands, Fenner said, noting that the business is estimated to be growing at 11 percent per annum.
Many Fenner customers have manufacturing and service facilities in Singapore, so the deal enables these customers to purchase custom-manufactured products locally. "Multiseals will give FAST instant recognition in the region and a platform for growth," Fenner said, in a 28 April announcement.
As part of the growth strategy, Multiseals will expand its offerings to include the full range of the oilfield products supplied by CDI Seals in Houston, Texas, which is part of FAST. CDI Seals and Multiseals have previously been partners in providing engineered designs, materials, and solutions to meet customer specific requirements.
The partnership combines the custom moulding and high-performance machining capabilities of both operations. Multiseals will also manufacture and support the recently launched Tuff Breed range of oilfield expendables which includes well-service-packing products, specifically designed for hydraulic fracturing and pressure pumping operations in oil & gas developments.