Prysmian Group has signed an agreement to acquire 100% of the privately-held US company Gulf Coast Downhole Technologies (GCDT) for an initial consideration, subject to adjustment, of approximately $45 million in cash. The transaction involves an earn-out determined on an average combined EBITDA in the next three years and for a maximum earn-out payment of about $21 million.
Based in Houston, GCDT is active in the design and supply of innovative downhole equipment for the Oil & Gas industry, with a turnover of approximately $ 34 million in 2014. GCDT products are installed in oil and gas wells around the world and consist of integral components in the systems that provide downhole control, injection, flow assurance and monitoring. GCDT's customer base covers a diverse range of oil field service companies including Halliburton, Baker Hughes, Weatherford and Schlumberger. GCDT products are ultimately installed in completions operated by major oil and gas producers like Chevron, ExxonMobil and Shell around the globe.