Plexus Holdings has signed a business purchase agreement (BPA) to sell its wellhead exploration equipment and services business for jack-up applications to FMC Technologies (TFMC), a subsidiary of TechnipFMC.

Plexus will also enter a collaboration agreement with its subsidiary POSL and TFMC to establish a framework for the development of the company’s existing POS-GRIP IP technology.

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Under the BPA terms, the Plexus Group will receive £15m as initial gross cash consideration, subject to certain adjustments.

It is also eligible to receive an additional amount of £27.5m, which depends on the future performance of the jack-up business during a three-year earn-out period.

Plexus Holdings CEO Ben Van Bilderbeek said: “I believe that the disposal and collaboration agreement with TechnipFMC opens up new opportunities for our technology.

“Both parties have agreed to enter a transitional services agreement to ensure continuity of the jack-up business.”

“TechnipFMC is acquiring a business which has supplied a wide range of blue chip operators of the calibre of BP, Centrica, ENI, Maersk, Royal Dutch Shell, Statoil, and Total with wellheads for use on hundreds of wells worldwide and which already has a strong market reputation in the UKCS and ECS, particularly for HP/HT applications.”

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The divestment is expected to support the company’s strategy to increase the industry awareness of POS-GRIP friction grip technology.

TechnipFMC Surface Technologies business president Richard Alabaster said: “I am very pleased that we have reached this agreement, which fits within TechnipFMC Surface Technologies’ strategy to extend and strengthen our position in exploration-drilling products and services while leveraging our global field presence.”

Both parties have agreed to enter a transitional services agreement to ensure continuity of the jack-up business.

Plexus has also agreed to sign two licence agreements to deliver the necessary IP to TFMC related to the divested business.