James Fisher and Sons plc, the Barrow-in-Furness marine engineering firm, said it has agreed the sale of its Aberdeen business RMSpumptools Limited to ChampionX UK Limited for a total enterprise value of £90 million.

“After taking into account cash-like and debt-like items and estimated transaction costs, the net proceeds are expected to be approximately £83 million in cash, subject to certain customary closing adjustments …” said James Fisher.

“The net proceeds will be used to reduce leverage and strengthen the group’s balance sheet …

“The disposal is in line with James Fisher’s strategy to simplify and focus its portfolio through the sale of non-core assets …

“While RMS is a leader in its markets, it is a product business operating in the oil and gas industry that has minimal synergies with the rest of the group and does not strongly align with James Fisher’s strategy of focusing on maritime services to its core Energy, Defence and Marine Transport markets … 

“The disposal is expected to complete early in H2 2024, subject to approval by James Fisher’s shareholders, merger control clearance from the Saudi Arabian General Authority for Competition and certain other conditions.”

James Fisher CEO Jean Vernet said: “The sale of RMS marks a significant step in simplifying our portfolio to further strengthen our financial position and create a platform for sustained recovery.

“We believe the transaction represents good value for our shareholders, reflecting RMS’s strong performance in recent years. 

“The disposal allows James Fisher to continue its strategy of focusing and simplifying the Group, investing in the core portfolio and innovative new technologies that will deliver future growth.

“We would like to thank the whole RMS team for their hard work and dedication to James Fisher over so many years. 

“With its business portfolio, this is a great opportunity for ChampionX to build on RMS’s success and for our colleagues at RMS to benefit from the focus that this change of ownership will bring.”