Precision engineering group Hunting has completed the acquisition of Flexible Engineered Solutions (FES), a UK-based company, for £50m ($67.98m) on a cash-free/debt-free basis.

The transaction is subject to customary post-completion adjustments and marks a significant step in the execution of Hunting's 2030 Strategy.

The acquisition, funded from Hunting's existing cash resources, aligns with the company’s strategic focus on expanding its offshore and subsea revenue streams.

FES brings proprietary subsea fluid transfer technologies to Hunting's portfolio, offering potential for product bundling and cross-selling with the company’s existing subsea businesses.

The technology is critical for floating production storage and offloading vessels (FPSOs) and subsea distribution systems, and is expected to enhance Hunting's product coverage in deep-water and ultra-deep-water markets.

Hunting CEO Jim Johnson said: "We are pleased to complete the acquisition of FES. It immediately boosts our subsea portfolio with proprietary products and capabilities and clearly demonstrates progress on our Hunting 2030 Strategy.

“FES's fluid transfer solutions perfectly complement our existing subsea and FPSO-related lines, creating strong product bundling and cross-selling opportunities with our existing subsea businesses as well as the potential for further international growth.

“FES’s blue-chip customer base, international profile and high margin, mission critical applications make the business an ideal fit for Hunting.”

FES' strong margin profile and growth trajectory are expected to be accretive to Hunting's EBITDA (earnings before interest, taxes, depreciation and amortisation) margins.

The integration of FES is poised to be earnings accretive in the first full financial year post-acquisition, excluding acquisition costs and adjustments.

Furthermore, Hunting aims to leverage its global presence to expand FES' international reach in strategic locations including Brazil, South East Asia, the US and West Africa.

In March, Hunting acquired organic oil recovery (OOR) technology from its original shareholders for $17.5m.

This acquisition grants Hunting global rights to OOR technology, including more than 25 patents, distribution rights and a laboratory in California, US, bolstering the company's ability to accelerate commercialisation in North America and globally.

"Hunting acquires Flexible Engineered Solutions for £50m" was originally created and published by Offshore Technology, a GlobalData owned brand.