Cameron International to buy TTS Energy division for $270 mn
18 April 2012
Cameron International Corp, whose blowout preventer failed in the 2010 Gulf of Mexico oil spill, today announced plans to buy the drilling equipment business of TTS Energy division from Norway's TTS Group ASA for $270 million in cash.
The deal comes less than a year after the Texas-based oil field services and equipment provider acquired LeTourneau Technologies from Joy Global Inc for $375 million, in order to strengthen its drilling products business.
Norway-based TTS Energy Division provides high performance drilling equipment, multifunctional rigs, offshore cranes, offshore winches and control systems to the international energy industry.
Its automated drilling and handling equipment allows the entire operation to be remote controlled. From the inception of the offshore industry in the North Sea, TTS has been an active partner in developing equipment capable of withstanding the extremes of such harsh environment.
With the divestment, TTS Group said that it will exit the drilling equipment industry, both offshore and onshore. TTS Group will however retain and continue to develop and grow Offshore Handling (cranes and winches), which is not included in the sale.
With over $5 billion in annual revenues, Cameron provides flow equipment products, systems and services to worldwide oil, gas and process industries.
Cameron works with drilling contractors, oil & gas producers, pipeline operators, refiners and other process owners to control, direct, adjust, process, measure and compress pressures and flows.
The company came into the limelight when in 2010 its blowout preventer failed to close the well head and stop the flow of oil from British oil giant BP's Deepwater Horizon oil well in the Gulf of Mexico and created the worst oil spill in the US history.