Acquisition of Tripoint Inc. for an Initial $30m

Expro International Group PLC 1 February 2000 ACQUISITION IN THE USA Expro International Group PLC ('Expro'), the international oil field services company, announced today the acquisition of Tripoint Inc. ('Tripoint'). Tripoint is the leading provider of well completion services in the Gulf of Mexico for an initial cash consideration of $30 million (£18.4m), with a deferred payment of up to $5 million in cash and ordinary shares based on performance over the next two years. Tripoint headquarters are in Houston, Texas. Key Points * The acquisition of Tripoint represents a significant further strengthening of Expro's position in the important Gulf of Mexico market, the company has strong market shares and extensive customer networks in the buoyant domestic and growing deepwater markets. * The acquisition complements Expro's existing Cased Hole production enhancement business and will enable Expro to offer its oil industry clients a broader range of services in the North American market. * Tripoint has a strong base of technology development which Expro will enhance through its business stream structure and exploit through its geographic distribution. * The acquisition is expected to be EPS enhancing before goodwill amortisation in the year ended 31 March 2001 and broadly neutral in the current financial year. In connection with the acquisition, Expro is increasing its debt facilities from £45 million to £70 million. John Dawson, Chief Executive of Expro, said: 'The acquisition will enable Expro to position itself to continue its long term growth strategy. The business expands Expro's Cased Hole service range and provides a real foothold in the developing market in the Gulf of Mexico, providing pull through benefits for other product lines, not only in the Gulf but also in other overseas markets'. Background Information Tripoint Tripoint is being acquired for an initial cash consideration of $30 million (£18.4 million), including the repayment of $10 million (£6.1 million) of outstanding debt. Dependent on the future performance of Tripoint, additional consideration of up to $5 million (£3.1 million) is payable in a mixture of cash and approximately 300,000 new Expro ordinary shares over two years. In the year ended 30 June 1999, Tripoint had turnover of $14 million (£8.6 million), the audited net assets of Tripoint were ($0.99) million ((£0.61) million), with a net loss of $3.12 million (£1.9 million). Tripoint is the largest independent provider of Tubing Conveyed Perforating services (TCP) in the US. It operates primarily in the Gulf of Mexico and Western Canada. It has approximately 70 employees. Tripoint performs approximately 25-30 per cent of the TCP operations occurring in the Gulf of Mexico, with around 90 per cent of revenue coming from this service. In addition to its core TCP and associated Drill Stem Testing (DST) services, Tripoint recently gained access through licensing agreements with Marathon and Corelab to new products and services some of which have been further developed with Tripoint in this rapidly developing market. These services include: Casing Conveyed Perforating (CCP) systems, StimGun, EXCAPE, POWR*PERF and the Circulating Perforation Gun. Expro will integrate the Tripoint business as part of its Cased Hole Services range, thereby offering clients a greater range of services and reducing dependence on other oil service companies. Tripoint's operations in Canada will provide Expro with operations and employees on the ground which will facilitate Expro's participation in Canadian oil and gas developments. Enquiries: Expro 0118 959 1341 John Dawson, Chief Executive Eric Woolley, Finance Director Cazenove 0171 588 2828 Mike Kirk Ludgate Communications 0171 253 2252 Denise Peplow/Claudine Cartwright Notes For Editors Expro is one of the UK's leading independent suppliers of oilfield services. It provides a closely related range of specialised services to assist operators in the upstream oil and gas industry to explore for, appraise, develop and produce hydrocarbon reserves. The products and services offered by Tripoint allow E&P companies to decrease drilling costs and increase production efficiencies. Tripoint is a world leader in well completion technology, with services such as casing conveyed perforating and one-trip systems. Tripoint offers a complete offshore perforating package, including guns, tools, test tools, packers, gauges and surface equipment. Their simplicity and minimal intervention is particularly well suited to deep-water developments.
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