Clough buys US subsea engineering firm

Perth-based engineering and construction company Clough has acquired Houston-based subsea engineering firm Ocean Flow International LLC, giving Clough a foothold in the oil and gas capital of the world.

Clough today announced the acquisition of 70 per cent of Ocean Flow with the remaining 30 per cent of shares to be acquired over the next three years.

Ocean Flow is a subsea engineering and construction management company specialising in deepwater facilities for small and medium sized independent oil and gas operating companies.

Clough shares were up half a cent to 88.5 cents at 1137 AEST

Full announcement below:

Clough acquires Ocean Flow International LLC

Engineering and construction company Clough Limited (ASX:CLO) today announced the acquisition of 70% of the shares of Ocean Flow International LLC ("Ocean Flow"), with the remaining 30% of the shares to be acquired over the next 3 years.

Ocean Flow is a subsea engineering and construction management company specialising in deepwater facilities for small and medium sized independent oil and gas operating companies. Forecast revenue for 2009 is US$12m.
Ocean Flow is headquartered in Houston, USA. The company will retain its trading name and will continue to be run by its existing management team supported by Clough in its growth strategy.

John Smith, Clough's Chief Executive Officer said, "Our strategic focus is as an engineering led EPC contractor within the oil and gas sector and in particular on gas to LNG projects and the subsea production sector. This small acquisition gives Clough a foothold in the oil and gas capital of the world and strengthens our subsea engineering and construction capability. We look forward to working with the existing management team of Ocean Flow to grow the business."

The acquisition is expected to be accretive to earnings from the first year.