(BIDDEFORD, ME – APRIL 18, 2008) – Flotation Technologies, Inc., a world leader in the engineering, design and manufacturing of deepwater buoyancy and polyurethane elastomer systems, today announced that it will be acquired by Houston-based Deep Down, Inc., (OTC Bulletin Board: DPDW).
“As the increase in demand in the offshore oil industry increases, partnering with another company seemed only natural,” stated Tim Cook, president, Flotation Technologies. “In 2007, the company saw record growth. Not only did we double our revenue, but the company relocated to a plant, twice the size of the previous one, doubling our staff and tripling capacity, primarily as a response to the unprecedented demand in the offshore oil industry.”
Un-audited financial information provided by Flotation Technologies indicates that revenue for the last 12 months, ending March 31, 2008, was approximately $17.27 million, with a pretax of $4.84 million and EBITDA of $5.26 million, adjusted for certain nonrecurring expenses and a gain on sale of real estate assets. Financial results of operations for the year ended December 31, 2007 and 2006 will be presented when audits are finalized. The total price for the acquisition is expected to be approximately $23.3 million. Deep Down’s closing of the purchase of Flotation Technologies remains subject to several conditions including Deep Down’s obtaining financing for the payment of the purchase.