Akastor’s wholly owned subsidiary MHWirth has entered into agreements with Bronco Holdings for the purchase of 100% ownership interest in Bronco Manufacturing.
Akastor said that the acquisition of Bronco Manufacturing was made through MHWirth’s US subsidiary, MHWirth Inc., for a total consideration of $31.5 million.
The company added that the aim of the acquisition was to increase Bronco’s market share globally through utilizing MHWirth’s established offshore relationships and to strengthen the position in the U.S. onshore market.
Bronco, a provider of aftermarket solutions and products to the global onshore and offshore drilling market, will strengthen MHWirths’s presence in North America and increase local manufacturing capabilities in the Houston region.
“By utilizing the competencies and supply chain of Bronco, MHWirth also sees potential on current MHWirth equipment, as well as the potential to re-engineer relevant equipment to make it more suitable for onshore applications,” Akastor said.
Merrill Miller, executive chairman of MHWirth, stated: “Getting these two companies working together opens up strategic opportunities in the land and offshore drilling equipment space that were not easily available to either company separately.”
Max Mantooth, CEO and co-founder of Bronco Manufacturing, added: “We feel that MHWirth provides us with the chance to expand our sales and customer base worldwide, land and offshore.”
Closing of the transaction took place simultaneously with the effective signature of the agreements. Bronco will be consolidated into MHWirth segment in Akastor Group.
Eirik Bergsvik, CEO of MHWirth, said: “This acquisition is an important part of our strategy, as announced when our chairman Pete Miller joined earlier this year, and it will contribute in the growth of our aftermarket and repair business. We hope to be able to quickly expand the Bronco business.”
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