NOV says acquisition gives it new technologies, best-in-class manufacturing, sales into new markets
National Oilwell Varco, Inc. says plans to acquire Trican Well Service Ltd.’s completion tools business, which designs and sells downhole tools for multi-stage fracturing and completions in North America and select international markets, for $53.5 millionCDN.
“The transaction with NOV will strengthen our balance sheet and will allow us to focus on its core remaining businesses,” said Dale Dusterhoft, CEO of Trican.
“We believe NOV, with its leading global platform, will be able to provide continued technical leadership and customer support for the Completion Tools business. We would like to thank our employees, customers, and suppliers for their support.”
The transaction involves the sale of all material assets of Trican’s subsidiaries, Trican Completion Solutions Ltd. (CDN business) and Trican Completion Solutions, LLC (USA business) and all of Trican’s direct and indirect equity interest in each of Petro Tools Holding AS (Norwegian business) and Trican Completion Solutions LLC (Russian business), as well as certain assets related to the completion tools business held by Trican and certain affiliates, the company announced in a press release.
“This transaction represents an exciting step for NOV in expanding the breadth of our completion and production related product offerings,” said NOV CEO Clay Williams.
“The transaction allows NOV to leverage our best-in-class manufacturing and global supply chain to expand sales into new markets and meet our customers’ demands for cost-effective, innovative and high quality completion tools.”
The agreed purchase price for the disposition is CAD$53.5 million, with customary working capital, net debt and other adjustments with adjustment amounts to be determined following closing.
“The technologies acquired along with the talented team, which will continue to develop additional downhole completion solutions as part of the NOV family, make this transaction consistent with our strategy of investing in solutions which assist our customers in lowering their cost of supply,” said Williams.
Total consideration payable will consist of $30 millionCDN cash, NOV shares worth $23.5 millionCDN, with all shares subject to a six month holding period from the date of issuance.