James Fisher Group offloads oil and gas business with ‘minimal synergies’

RMS Pumptools

James Fisher and Sons plc is to sell RMSpumptools to ChampionX UK in a deal that values the business at £90 million.

As part of the longer term strategic review of the business Barrow headquartered marine business Fisher will take approximately £83m in cash, to reduce debt and simplify and focus its portfolio through the sale of non-core assets.

FIsher’s board told the stock market this morning that though RMS is a leader in the oil and gas industry it has “minimal synergies” with the rest of the group and “does not strongly align with James Fisher’s strategy of focusing on maritime services to its core Energy, Defence and Marine Transport markets.”

However, the deal is also subject to approval by the Saudi Arabian General Authority for Competition and certain other conditions.

Jean Vernet

Jean Vernet, Chief Executive Officer of James Fisher, said: “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.

“We would like to thank the whole RMS team for their hard work and dedication to James Fisher over so many years. With its business portfolio, 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.”

RMS designs and manufactures completion systems and components for Electrical Submersible Pump (ESP) applications in the artificial lift segment of the oil and gas industry.

The business operates from four locations in the UK, including Aberdeen, Malton in North Yorkshire, Saudi Arabia and the United Arab Emirates and employs 130 people with revenues of £43m and EBITDA of £12m.

Following Completion, James Fisher will continue to pursue its strategy of focusing on the market verticals of Energy, Defence and Maritime Transport where it has a sustainable competitive advantage.

James Fisher will continue to implement its internal change agenda, including a focus on improvement and simplification, aimed at creating a more focused, sustainable business and targeting a value enhancing return on capital employed.

Click here to sign up to receive our new South West business news...