Malta-based Medserv has announced that it has today completed the acquisition of Middle East Tubular Services (METS), a group of companies based in the UAE, Oman and Iraq.
Established in 2006 in Sharjah, UAE, METS has grown rapidly becoming a market leader due to its position as the only one-stop-shop for oil country tubular goods – or OCTG, according to a statement from the company
Medserv has acquired the entire issued share capital METS Holdco that in turn holds the entire issued share capital of METS UAE and METS Oman. In the case of METS Iraq, the Company announces that it has amended the terms of the SPA such that METS Holdco holds 90% of METS Iraq (rather than 100%). The remaining 10% will continue to be held by Jarrett Asset Holdings Corporation, a founding member of the METS operation in Basra, Iraq.
It was originally anticipated that the Sellers would procure the transfer of Jarrett’s shares in METS Iraq to METS Holdco. After discussions held in Dubai over the last couple of days, the parties agreed that Jarrett will continue to hold its 10% shareholding in METS Iraq. As a result, the purchase consideration of METS Holdco has been reduced from USD46,000,000 to USD45,000,000. The Company amended the terms of the SPA in order to cater for this and did so after having considered the best interests of the Medserv group of companies.
The Company however does not consider this variation to the transaction as whole to be significant or material, within the meaning of the Listing Rules. Paul Hayward, founder of the METS Group will remain on as Chairman of the METS Group of Companies, whilst Gareth McMurray will retain his position as Regional Manager of the Companies in order to ensure the continued growth and success of the METS Group in the Middle East.
Anthony Diacono, Chairman of Medserv, said:
“We are excited about the prospects that this acquisition brings to the table. Besides the strong presence in the Middle East which is in line with our strategy for geographic diversification, the synergies between the two groups of companies provides both METS and Medserv with an opportunity to grow and cross sell to their respective markets.
“The news has already been incredibly well received by our respective clients and we are already seeing the potential of the synergies come into play.”
(Source: Medserv Energy)