Deep Down Inc to acquire Flotation Technologies
"As the increase in demand in the offshore oil industry increases, partnering with another company seemed only natural," stated Tim Cook, president, Flotation Technologies. "In 2007, the company saw record growth. Not only did we double our revenue, but the company relocated to a plant, twice the size of the previous one, doubling our staff and tripling capacity, primarily as a response to the unprecedented demand in the offshore oil industry."
"Flotation Technologies will work synergistically with the team at Deep Down," explained David Capotosto, executive vice president, Flotation Technologies. "The merger is aimed at increasing the market share in the offshore and oceanographic industries and acquiring new customers. Each company's product offerings are a complement to the other and will help grow market segments and meet customer needs. Strategically the acquisition makes sense; the company will have a broader global footprint."
"Part of this positive growth is to continue to provide enhanced service to existing oceanographic and offshore customers alike," Capotosto continued. "This opportunity will enable Flotation Technologies to grow its presence in the design and manufacture of deepwater buoyancy systems and continue to provide world-class products and services."
Un-audited financial information provided by Flotation Technologies indicates that revenue for the last 12 months, ending March 31, 2008, was approximately $17.27 million, with a pretax of $4.84 million and EBITDA of $5.26 million, adjusted for certain nonrecurring expenses and a gain on sale of real estate assets. Financial results of operations for the years ended December 31, 2007 and 2006 will be presented when audits are finalized. The total price for the acquisition is expected to be approximately $23.3 million. Deep Down's closing of the purchase of Flotation Technologies remains subject to several conditions including Deep Down's obtaining financing for the payment of the purchase.
