ADNOC Drilling and Alpha Dhabi’s ‘Enersol’ joint venture increases equity stake in Gordon Technologies to 67.2%

ADNOC Drilling Company and Alpha Dhabi Holding announced today that their joint venture Enersol RSC LTD has agreed to acquire an additional 42.206% equity stake in Gordon Technologies LLC for consideration of approximately $270 million, making Enersol the majority equity holder.

The consideration is based on a valuation in line with the one underpinning the initial 25% stake purchase announced in January 2024.

Approximately 80% of the consideration for the 42.206% additional stake acquired by Enersol will be funded upon closing. The remaining part of the consideration is expected to be paid in the next two years, subject to certain performance conditions. Closing of the transaction is subject to customary regulatory approvals and closing adjustments.

The acquisition is economically accretive to Enersol from profitability, valuation multiple, cash flow generation and dividend potential standpoint, along with an FY2023 free cash flow yield of more than 10%.

Enersol is actively advancing plans to acquire and/or invest in multiple businesses, subject to regulatory approvals, and foster a scalable ecosystem that will enhance market value and improve operational efficiencies.

Gordon is a leading provider of measurement while drilling (MWD) technology to the oil and gas industry. MWD technology measures key information near the drill bit and transmits data to the surface without interrupting normal drilling operations.

Gordon completed setting up its Abu Dhabi business with the intention to start field operations in the MENA region in Q2 2024.