08.03.2006

VP buys Oilfield service company

Vp plc, owner of UK Forks and Hire station, has acquired Bukom General Oilfield Services Ltd, along with its overseas subsidiaries in Holland and Singapore for £5.7 million in cash.

Bukom Oilfield Services is a leading supplier of compressors, boilers, heat exchangers, sand filters and other equipment to the oil and gas exploration market, operating from locations in Aberdeen, Singapore and Holland.

The acquired business will be merged with Airpac Oilfield Services, a VP division, which operates a similar business from locations in Aberdeen, Great Yarmouth and Singapore. The merged business will trade as Airpac Bukom Oilfield Services.

While there is a good deal of market coverage overlap between Bukom and Airpac, Bukom are also particularly strong in Africa and South America.

For the year ended 31 December 2004, Bukom reported consolidated profit before tax of £900,000 on revenues of £3.9 million. Net assets are £3.8 million.

Jeremy Pilkington, chairman of Vp plc, said :

"We are delighted to acquire the long established Bukom Oilfield Services business which provides an ideal geographic and product compliment to Airpac's existing oil and gas support activities. The prospects for the global oil and gas exploration market remain very good and this acquisition places Vp in an excellent position to support this buoyant sector".