ChampionX to acquire RMSpumptools for $110M

ChampionX announced it plans to acquire RMSpumptools, a business unit of the energy division of UK-based James Fisher and Sons, or JFS. The unit designs and manufactures highly engineered mechanical and electrical solutions for complex artificial lift applications. Under the terms of the agreement, the net purchase price is approximately $110M inclusive of net working capital adjustments. The company anticipates that RMSpumptools will achieve approximately $65M in 2024 revenues and approximately $18M in 2024 adjusted EBITDA. RMSpumptools designs, manufactures, and delivers its solutions from locations in the United Kingdom, Saudi Arabia and the United Arab Emirates and has sales in most oilfield markets worldwide. Approximately 80% of RMSpumptools’s revenues are from outside North America. The acquisition will be funded by cash on hand and does not impact ChampionX’s 2024 return of capital framework which includes returning at least 60% of our 2024 free cash flow to shareholders. The transaction currently is expected to close towards the end of second quarter or beginning of the third quarter of 2024, following the receipt of customary regulatory and JFS shareholder approval, satisfaction of closing conditions and determination of potential purchase price adjustments.