KCA Deutag has announced the completion of the largest phase of Saipem onshore drilling business acquisition announced earlier this year.
This first phase encompasses Saudi Arabia, UAE and Africa, with Kuwait expected to follow later in Q4 2022. The acquisition of the Latin America business together with the rigs in Romania and Kazakhstan will complete in 2023.
The total consideration payable for Saipem Onshore Drilling is $550 million in cash and a 10% equity interest in the combined entity, with $85 million of cash consideration to be withheld pending completion of the remaining closings. In addition, Saipem will be entitled to appoint one board member.
KCA Deutag had revenue of $1.3 billion and EBITDA of $254m in the 12 months ending 30 June 2022. During the same period, Saipem Onshore Drilling generated revenue of $490 million and EBITDA of $124 million from its Middle East, Latin America and other markets.
Once the acquisition is fully completed the combined group will manage a leading global onshore drilling business generating over 50% of its EBITDA from the Middle East with more than 11,000 employees globally. Total backlog will increase by $1.8 billion to $6.7 billion.
