Don't think this has been posted yet, but this is the news release about the acquisition from the Cuming website.Website is loaded with good info. Getting real excited about this acquisition!
sagedono
225 Bodwell Street • Avon, MA • 02322 USA • (Telephone) ++1-508-580-2660 • (Fax) ++1-508-580-0960
NEWS RELEASE
May 3, 2010
CUMING CORPORATION TO BE ACQUIRED BY DEEP DOWN
AVON MA, May 3, 2010 – Cuming Corporation, a world leader in the design and manufacture of
technologically advanced syntactic foam flotation products and insulation materials for the
offshore oil and gas industry, today announced that it will be acquired by Houston-based Deep
Down Inc. (OTC Bulletin Board: DPDW).
“The worldwide search for offshore energy has resulted in unprecedented growth for our
company,” said John Cuming, Chairman/CFO and principal owner of Cuming Corporation. “We
are enjoying record sales and order backlog and we have quadrupled our production capacity in
order to meet the huge demand for our products.” At the same time, we are searching for ways
to expand our business into new overseas markets such as Brazil and the Far East. It makes
sense for us to join forces with Deep Down and integrate our product line with Deep Down’s
other oil and gas and marine businesses such as Flotation Technologies. This acquisition will
enable us to better serve our existing customers as well as hopefully gain new ones.”
“Cuming is in the midst of record levels of backlog and bidding activity due to the robust
expansion in deepwater drilling and production activities and the Company’s strong reputation
for providing the highest quality products in the industry”, explained Larry Parkinson, President,
Cuming Corporation. “Growth of the magnitude we are projecting will require increased capital
and resources that are more readily available from a publicly traded company such as Deep
Down. As such, the Company has found an acquisition partner that can capitalize and leverage
the Cuming brand name, reputation, products and customer relationships to further exploit the
favorable outlook in the deepwater market. In addition, we feel this is the right transaction for
growing our business and providing the best opportunities for our employees, who are the
reason we have been so successful.”
Audited financial information provided by Cuming Corporation indicates that revenue for the last
twelve months, ending December 31, 2009 was approximately $73.3 million with a gross profit
of $15.0 million. The total price for the acquisition including the assumption of certain liabilities is
$50.0 million. Deep Down’s closing of the purchase of Cuming Corporation remains subject to
several conditions including Deep Down obtaining financing through a private placement
offering for the payment of the purchase. Cuming management estimates that a closing will take
place in approximately one month.
About Cuming Corporation
Cuming Corporation, headquartered in Avon, Massachusetts with approximately 250
employees, is a diversified high technology manufacturing company with divisions making
products and materials for offshore oil and gas exploration and production. Cuming’s C-FLOAT
buoyancy products are widely used to support both drilling and production risers in deepwater
operations, and have played a vital role in establishing many new depth records. C-THERM
225 Bodwell Street • Avon, MA • 02322 USA • (Telephone) ++1-508-580-2660 • (Fax) ++1-508-580-0960
insulation products manufactured at our New Iberia, LA facility are the highest performance
materials available for protecting ultradeep high temperature wells, and the C-TECH product
line also manufactured in New Iberia provides unique properties guarding subsea well casings.
The company sponsors an aggressive R&D program, has secured comprehensive patent
protection for its key technologies, and has received awards for innovation and engineering
excellence. As of March 31, 2010, the Company had booked backlog and signed letters of intent
representing $138 million and $32 million of orders, respectively. For more information, visit
www.cumingcorp.com.
About Deep Down
Deep Down, Inc., headquartered in Houston, Texas is an oilfield services company serving the
worldwide offshore exploration and production industry. Its services and technological solutions
include distribution system installation support and engineering services, umbilical terminations,
loose-tube flying leads, flotation and drill riser buoyancy, ROVs and toolings. Deep Down
supports subsea engineering, installation, commissioning, and maintenance projects through
specialized, highly experienced service teams and engineered technological solutions. Its
primary focus is on more complex deepwater and ultra-deepwater oil production distribution
system support services and technologies, used between the platform and the wellhead. It
provides these services through its four subsidiaries. More information about Deep Down is
available at www.deepdowncorp.com, by contacting the company at (281) 517-5000, or
ir@deepdowninc.com.
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