Dearborn purchased by UK company for $83.5M

By Lisa Williams Ackley
Staff Writer

FRYEBURG — Dearborn Precision Tubular Products, Inc. on Portland Street here has been purchased by Hunting PLC, an international energy services company based in the United Kingdom, for $83.5 million.

However, there will be no change in management or current employees, Dearborn’s President, Bill Findeisen, told The Bridgton News Tuesday afternoon.

“It is business as usual for Dearborn Precision,” Findeisen stated. “We’ll continue to remain here. The company has new owners that we have great confidence in that bring international operating expertise and growth capital to our business. The acquisition is positive for our customers and our employees. Our management is staying, and so are the employees — and we’re planning on being here for a long, long time.”

Findeisen said longtime Plant Manager John Berg and other company administrators and employees will continue on in their current duties at Dearborn.

He said further, “I know the Hunting organization well on a personal and professional basis, and I am confident that they will be a great new owner for Dearborn Precision. I am pleased to be retained as President of the company and continue working with our great family of employees. Our management and employees have done a great job in building our business in Fryeburg. Hunting Energy Services cares for its employees and that was one of the important factors in our decision as we considered the company’s future. The company’s employees and key managers will remain in place as we continue to grow in all of our product lines and markets.”

Dearborn was formed in 1977 and provides specialist precision machining. It employs around 225 personnel and operates from one facility providing over 140,000 square feet of production, storage and office accommodation.

The acquisition of Dearborn is expected to be earnings enhancing in the first full financial year before acquisition costs and normal acquisition adjustments such as fair value adjustments and the amortization of intangible assets. Hunting is acquiring Dearborn from a company owned by three individual investors — Findeisen, Tom Shaffner and Ken Dearborn, son of Dearborn’s founder, Howard K. Dearborn, who moved to Maine from Ohio in the mid-1960s and turned 93 years old in May of this year.

As for the sale price of $83.5 million (90£m), the consideration paid is on a cash-free debt-free basis and will be funded from Hunting’s existing cash and bank borrowing facilities.

Dearborn manufactures high precision tubular and rotating metal components for customers who require products with exacting tolerances and unique configurations. The components are used primarily for Measurement-While-Drilling (MWD) and Logging-While-Drilling (LWD) applications in the oil and gas sector, in addition to products for the aerospace and power generation industries.

Hunting officials say the Dearborn business will contribute to Hunting’s Well Construction range of products and services.

Commenting further on the acquisition, Findeisen said: “Dearborn’s 200 plus employees have worked hard for the past 30 years to steadily grow this business by providing value to and earning the respect of our customers. The combination of our expertise in deep-hole drilling, coupled with our state-of-the-art machining capabilities create our strong niche. By teaming with Hunting, we have joined an international group that appreciates our business and understands the world energy markets. We will have access to additional capital for growth and join a significant global platform. We are very proud of our success as a Maine company and, under Hunting’s ownership, we will continue to grow and be an important employer in this great area.”

Dennis Proctor, Chief Executive of Hunting said: “Dearborn’s expertise in manufacturing close tolerance parts for the oil and gas sector will enable Hunting to broaden our manufacturing offering and continue our drive to supply products into higher specification oil and gas wells and the increasingly challenging environments being pursued by the global energy industry.”

Hunting PLC is an international energy services provider to the world’s leading upstream oil and gas companies. Established in 1874, it is a fully listed public company traded on the London Stock Exchange. It maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, it has principal operations in Canada, China, Hong Kong, Indonesia, Mexico, Netherlands, Singapore, United Arab Emirates and the United States of America.

Please follow and like us: