HMS Group acquires Sibneftemash
Moscow, Russia – July 1, 2011 – HMS Group (LSE: HMSG), the leading pump manufacturer and provider of flow control solutions and related services in Russia and the CIS, today announced that it has completed the acquisition of 98.59% of the share capital of Sibneftemash, an oilfield equipment manufacturer, for a total cash consideration of RUB 1.29 billion. Deal is fully financed with available credit facility.
- Integration of HMS Neftemash1 and Sibneftemash creates a major oilfield equipment manufacturer and provider of related services
- Synergies in sales of oil and gas modular equipment (HMS Neftemash) and oilfield services and process equipment (Sibneftemash) strengthen the market position and diversify HMS Group product offering to oil companies and oilfield services providers
- Unified sourcing enables budget savings for the procurement of materials and supplies
Sibneftemash, located in the Tyumen Region of the Russian Federation, designs, manufactures and supplies a diverse range of equipment and appliances used in the drilling, production of oil and gas and well servicing, including tank storage, cementing, well intervention and hydraulic fracturing equipment. The company benefits from a strong client base comprising of leading Russian and international oil producers and providers of oilfield services including Surgutneftegaz, Halliburton, Integra, Gazprom Neft, TNK-BP and Rosneft.
Artem Molchanov, Managing Director (CEO) of HMS Group, commented:
“We look forward to new growth opportunities in the booming market of oilfield development. As a result of this deal HMS Group further improves its ability to offer comprehensive solutions to its clients. We believe that this acquisition improves the potential to significantly increase our revenues from the oilfield equipment market in the future.”
The HMS Group is the leading pump manufacturer and provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. The HMS Group’s products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia’s core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. The Group reported revenues of RUB 7.1 billion, adjusted EBITDA of RUB 1.6 billion and profit for the period of RUB 1 billion for the three months ended March 31, 2011. The HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.
For further information, please contact:
| Inna Kelekhsaeva
Tel: +7 (495) 730-66-01, ext. 1318
THIS COMMUNICATION DOES NOT CONSTITUTE AN OFFER OF, OR THE SOLICITATION OF AN OFFER TO BUY OR SUBSCRIBE FOR, GDRs OR OTHER SECURITIES TO ANY PERSON IN ANY JURISDICTION TO WHOM OR IN WHICH SUCH OFFER OR SOLICITATION IS UNLAWFUL AND, IN PARTICULAR, IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE RUSSIAN FEDERATION.
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1 HMS Group owns 100% of OJSC HMS Neftemash – one of the leading manufacturers of modular oilfield equipment located in Tyumen.