Magma Global, the manufacturer of m-pipe®, is very pleased to announce that is has sold a minority interest in the business to its joint development partner, Victrex plc (LSE:VCT), an innovative world leader in high performance polymer solutions, for a cash consideration of £10m.
Magma’s m-pipe® combines Victrex’s PEEK polymer with high grade carbon fibre, enabling the complete re-design of subsea projects and the subsequent reduction in installed costs.
Building on recent momentum, Victrex’s investment will deepen the relationship between the two companies and support the continuing development of Magma’s manufacturing capability.
Victrex’s involvement as an equity partner, with strong experience of gaining market acceptance for innovative technology, will also help facilitate further adoption of m-pipe® across the oil and gas industry.
Commenting on today’s announcement, Martin Jones, Magma Global CEO said:
“We are very pleased to strengthen our relationship with Victrex as they take a minority equity interest in Magma. Today’s announcement is a great endorsement of the progress we are making within the oil & gas sector and comes towards the end of an extremely active year for the business. Magma has continued to make significant progress in ensuring that m-pipe® is established as the technology of choice for demanding subsea applications within the oil and gas industry.”
“The year has seen the launch of a leading rental system for hydraulic pumping for intervention, early production and temporary riser replacement, consisting of m-pipe® with an Integrated Deployment Package and crew, as well as the completion of the extended production facility at our UK headquarters in Portchester.
Whilst the Oil & Gas market remains challenging, Magma’s programme is focused on the application of m-pipe® in areas where is can deliver savings in both capex and opex for operators.
We anticipate next year to be equally busy despite the ongoing market pressures.”
Martin Court, Victrex Executive Director, said:
“Our strategic investment in Magma Global is in line with our move downstream into selected semi-finished and finished products, which offer customers more complete solutions, beyond simply materials. Magma is already one of Victrex’s ‘mega-programmes’ and our investment will not only help underpin the project, it will enable us to bring our expertise of gaining market acceptance and adoption for new innovative technology into the project. With first meaningful revenues for Victrex during 2016, the long term potential remains attractive.”