Smiths Group to sell artificial lift unit to Endurance Lift for $39.5 million
The deal, expected to close by the end of the year, is subject to regulatory approval and its management team will transfer to Endurance Lift.
The artificial lift business, which is part of the John Crane division of Smiths, primarily sells sucker rods for onshore upstream oil and gas customers in the US and Romania.
CEO, Andy Reynolds Smith, said: "This disposal demonstrates our ongoing commitment to increasingly focus our portfolio on building technology differentiated leadership positions in our chosen markets.
"The capital released from this transaction will be reinvested in attractive growth opportunities, whilst allowing the artificial lift business to progress under different ownership."
For the year ended 31 July 2015, the business and assets of $63.2m had combined revenues of $90.8m and an operating loss of $1.8m. ■