KCA Deutag ACQUIRES LAND DRILLING CONTRACTOR DALMA ENERGY
KCA Deutag, a leading global drilling and engineering contractor, has entered into an agreement with the shareholders of Dalma Energy LLC to combine their respective businesses through the acquisition by KCAD of Dalma’s Omani and Saudi Arabian businesses. Dalma Energy headquarters in the sultanate of Oman owns and operates 22 land rigs throughout the Arabian Gulf, North Africa and India.
Consideration for the acquisition, based upon an Enterprise Valuation of $660 million, will consist of $100 million of cash and shares to be issued to Dalma’s shareholders valued at $220 million. KCAD had revenue of over $1.16 billion and EBITDA of $219-224 million in the year ending 31 December 2017. The Dalma Business had revenue of $3122 million and EBITDA of $110 million in the year ending 31 December 2017.
Upon completion, the KCAD group as enlarged by the Dalma Business will continue to operate under the KCA Deutag brand name and will have approximately 9,700 employees.
The acquisition will consolidate KCAD’s position as the world’s premier international land drilling and engineering contractor with a fleet of 83 land rigs globally. The deal is expected to generate more than $10m of run-rate cost savings synergies per annum for the Enlarged KCAD Group and will provide enhanced opportunities for Bentec, the group’s drilling rig and oilfield equipment manufacturer.
Norrie McKay, CEO of KCAD, said: “The acquisition of Dalma’s operations in Saudi Arabia and Oman will significantly strengthen our foothold in the Middle East, and provide us with a stronger platform to develop and grow our business in what is an exceptionally attractive region.
Dalma’s operations are an excellent strategic fit, not only consolidating our position in Oman as the country’s leading owner and operator of onshore drilling rigs but also enabling us to offer our operational expertise in the substantial Saudi Arabian onshore drilling market, which has been a key target for KCAD.” (Source: KCA Deutag – Image: Dalma land rig/Cepsa)
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