FMC Technologies intends 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.
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.