HOUSTON (Aug. 18, 2010)—Oilfield services company Deep Down Inc. said while it missed a July 31 deadline to close on its acquisition of syntactic foam parts maker Cuming Corp., the $37 million deal remains ongoing, and it is trying to arrange suitable financing,
Neither party terminated the sale, announced May 3, when the deadline passed, Deep Down said.
The company plans to finance the acquisition with a combination of debt and equity and is negotiating terms with several financial institutions and private equity firms. Completing the purchase still hinges on several conditions, including Deep Down obtaining adequate external financing to fund the approximately $34 million cash component of the purchase price, the company said.
Cuming makes buoyancy and insulation products with a wide range of deepwater oil and gas industry applications.