Energy services group Abbot increased pre-tax profits (excluding goodwill amortisation) by 20% to £6.5m in the first half of 2001. It also announced a £134m acquisition, to be partly funded by a placing and open offer to raise £44.3m net of expenses at 155p per share. Abbot will acquire Deutsche Tiefbohr-Aktiengesellschaft ('Deutag'), which supplies drilling and work-over services to the worldwide oil and gas industries and has debt of £75m, which will be paid off as part of the all-cash consideration. If completed, Abbot claims the acquisition will give the company a full range of production drilling services for both onshore and offshore operators in the world oil industry, together with engineering, rig design and construction services. The move is part of a strategy to expand away from the North Sea, which is now declining in importance as reserves dry up. The Bank of Scotland has also agreed to provide a £142.5m debt facility if the transaction goes ahead. Turnover for Abbot in the first half was £102.2m, up 21%.