NORTHBRIDGE INDUSTRIAL SERVICES (AIM:NBI) – interesting oilfield services acquisition
The industrial services and rental company has announced the acquisition of the trade and assets of OMM BVI based in Abu Dhabi, a rental provider of drilling tools for the oil and gas industry to customers in the Middle East, North Africa and the C.I.S.
The initial consideration is US$3.0 million (£1.9 million) made up of US$2.5 million (£1.6 million) in cash and US$0.5 million (£0.3 million) in 66,829 Northbridge ordinary shares. There is an additional deferred payment element of a maximum of US$4.75 million (£3.0 million) payable in March 2017 subject to the performance of the business during the 12 months ending 31 December 2016. OMM was founded in 1989 and proforma unaudited accounts for the eight month period to 31 August 2013 indicated net assets of US$6.6 million (£4.1 million), with annualised hire related revenue of US$4.6 million (£2.9 million). The business is…