Pipeline Corrosion Firm Sold for $116M
Global HSE concern Halma plc has acquired California-based Rohrback Cosasco Systems (RCS), the leading U.S. corrosion monitoring firm, Halma has announced.
The sale was completed May 30, the company said.
RCS is a privately held world leader in the design, manufacture and sales of pipeline corrosion monitoring products and systems for the oil, gas, petrochemical, chemical, utilities and other sectors.
Based in Santa Fe Springs, CA, RCS also has offices in Texas, as well as in Canada, UK, UAE, Singapore, China and Australia.
By the Numbers
Halma paid a $108 million (£64.7 million) cash consideration to RCS’s private shareholders for the share capital, plus $8.0 million (£4.8 million) for cash retained in the business.
The acquisition is "expected to be immediately earnings enhancing" and was funded from Halma’s existing cash and debt facilities, Halma said.
RCS reported $44.4 million in revenues in 2013, according to Halma. The current RCS management team will remain in place and continue to operate the business as part of the Halma Process Safety sector.
About the Companies
RCS was established in 1950 as the Corona Oil Sales and Service Company, according to the company's website.
UK-based Halma plc is a billion-dollar global provider of health, safety and environmental products and services. RCS will join its Process Safety division.
In 1974, Grant Oil Tool Company becomes part of MASCO Corporation and established COSASCO products as an international provider of corrosion monitoring technology.
In 1984, Rohrback Instruments and COSASCO merged to form Rohrback Cosasco Systems.
Ten years later, Masco Corporation retired from the energy industry and sold RCS to Corrpro. In 2003, RCS became an independent company "committed to developing new products, markets and technologies for the corrosion-related industry."
RCS issued no statement on the Halma acquisition.
For Halma, the acquisition "expands our portfolio of critical safety products which are sold into the energy and utility markets to protect life and operational assets," said chief executive Andrew Williams.
|Rohrback Cosasco Systems|
RCS was founded in 1950 as the Corona Oil Sales and Service Company. After a series of owners, the company became an independent supplier of products and technologies for the corrosion industry in 2003.
Based near London, the Halma group of companies dates to 1894 and reported about $1 billion (USD) in revenues in 2012-13.
Deere said the RCS would provide "exciting opportunities" for Halma's continued growth.