Forum Energy Technologies’ subsidiaries have entered into a definitive agreement to sell their 40% interest in subsea rentals company Ashtead Technology.
The buyers of Forum’s interest are Buckthorn Partners and other investors that currently own the majority of the equity interests in Ashtead.
Total consideration for Forum’s interest and the settlement of a Forum GBP 3 million loan to Ashtead will be $47.8 million.
Forum will receive approximately $39 million in cash proceeds at close and a new approximately GBP 7 million loan with a three year maturity.
Cris Gaut , Forum’s chairman and CEO, SAID: “The significant proceeds from this transaction will be used to further reduce debt, accelerating Forum’s debt reduction strategy. Over the last three quarters, Forum’s strong free cash flow generation has allowed us to reduce our net debt by approximately $54 million, and we expect this momentum to continue in the second half of 2019.”
Forum became an investor in 2018 when it contributed its Forum Subsea Rentals products in exchange for a 40% equity interest in Ashtead.
The transaction is expected to close in the third quarter.