HOUSTON, Sept. 24 /PRNewswire-FirstCall/ -- FMC Technologies, Inc. announced today its intent to acquire Multi Phase Meters AS (MPM). Based in Stavanger, Norway, MPM is a global leader in the development and manufacture of high-performance multiphase flow meters for the oil and gas industry. FMC intends to acquire 100 percent ownership of MPM upon closing, with an initial cash payment of approximately $30 million and two earn-out payments based on 6.6 times 2012 and 2013 EBITDA. The transaction is expected to close in the fourth quarter of 2009 and be accretive in 2011.
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MPM's metering technology delivers high accuracy and self-calibrating multiphase meters, with low maintenance features to meet the industry's increasingly demanding requirements for subsea applications as well as topside applications. The MPM product line augments FMC's portfolio of technologies for optimizing oil and gas recovery.
"By expanding our product offering through MPM's advanced multiphase flow meters, FMC will be able to further optimize its subsea technologies and therefore bring significant value to our customers," said Peter D. Kinnear, FMC's Chairman, President and Chief Executive Officer.
"We are pleased to become part of FMC Technologies and believe that the combination will further advance our product lines and solutions for a global set of oil and gas customers," said Hans Olav Hide, Chief Executive Officer of MPM.
FMC Technologies, Inc. is a leading global provider of technology solutions for the energy industry and other industrial markets. The Company designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. Named by FORTUNE Magazine as America's Most Admired Oil and Gas Equipment, Service Company in 2008, FMC Technologies has approximately 10,400 employees and operates 19 manufacturing facilities in 14 countries. For more information visit http://www.fmctechnologies.com/.
Multi Phase Meters (MPM) is an independent oil service company, focusing on manufacturing and delivery of multiphase and wetgas meters. MPM is registered and headquartered in Stavanger, Norway. MPM meters are unique because they provide consistently high accuracy over the full operating range of a well regardless the gas fraction, watercut or fluid composition. The meters require virtually no maintenance and are constructed for a 25 year plus lifetime at extreme condition. For more information visit http://www.mpm-no.com/. Carnegie ASA, a leading Nordic investment bank, has acted as sole financial advisor to MPM in the transaction.
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company's ability to control. These risks and uncertainties are described under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and may be modified in subsequent quarterly reports filed by the Company with the Securities and Exchange Commission that may be accessed on the Company's website. The Company cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements.
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