Enersol, a joint venture between ADX-listed companies ADNOC Drilling and Alpha Dhabi Holding, has agreed to acquire a 51% stake in NTS Amega Global.
NTS Amega Global is a leading global provider of advanced manufacturing, complex tool repair and rental solutions for the oil and gas sector. Headquartered in the UAE, NTS Amega Global has strategically located facilities in the USA, Canada, Saudi Arabia, Guyana, Singapore, and Norway. NTS Amega Global provides a range of solutions for technically challenging processes in the drilling industry to improve efficiency and reduce costs. This includes high tolerance manufacturing of complex rotary steerable heads, measuring/logging collars, carriers and accessories, drilling tools, topside, subsea, and process system components. These specialised repair processes extend the life and availability of measuring while drilling, logging while drilling, non-magnetic drill collars, and other drilling accessories.
The deal, valued at USD $58 million, excluding transaction fees, expenses, and completion adjustment, will make Enersol the majority equity holder in NTS Amega Global, a rental, repair, and manufacturer of advanced precision equipment valued at USD $58 million.
Enersol will acquire the 51% stake from Alpha Dhabi, which became a majority stakeholder in NTS Amega Global, upon its purchase of a 51% stake in October 2023. The transfer will take place at the same valuation, subject to regulatory approvals.
NTS Amega Global has demonstrated strong financials in FY2023, reporting revenue exceeding USD $120 million, a robust EBITDA margin, and a free cash flow yield of over 10%. This presents Enersol’s shareholders with a significant value proposition that can be unlocked by NTS Amega Global’s healthy profitability, attractive valuation multiples, and strong cash flow generation.
“Today, Alpha Dhabi has announced another important milestone for the local energy sector as our joint venture Enersol acquired a 51% stake in NTS AMEGA GLOBAL, a global leader in advanced manufacturing. At Alpha Dhabi, we aim to power investment with purpose, and we believe that this acquisition will deliver wider impact across our economy as it will help to unlock the UAE’s unconventional energy resources, advance national energy transition ambitions, and deliver economic diversification.” Eng. Hamad Salem Al Ameri, Managing Director and CEO of Alpha Dhabi Holding
The NTS Amega Global acquisition will help Enersol become an Oilfield Services technology-centric investment platform, allowing it to advance its plans to acquire and invest in multiple businesses to create a scalable technology ecosystem, a statement read. The platform is expected to “enhance market value by providing greater access to GCC markets and improve operational efficiencies.”
This deal marks the second acquisition by Enersol following its transaction to acquire a 67.2% controlling stake in Gordon Technologies, a provider of measurement while drilling technology to the oil and gas industry.
ADNOC Drilling said this acquisition will also provide scalable technologies to Turnwell Industries, its recently established unit that will enable it to undertake unconventional drilling operations for the country’s oil and gas juggernaut, Abu Dhabi National Oil Company (ADNOC).
