HMS Group Acquires Sibneftemash
HMS Group 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.
Transaction Rationale
- Integration of HMS Neftemash 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.”
Source: HMS Group
