ACQUISITION / National-Oilwell to acquire Phoenix Energy Products
HOUSTON, TX, May 13 /CNW/ - National-Oilwell, Inc. (NOI/NYSE) today
announced the signing of a definitive agreement to purchase 100% of the common
stock of Phoenix Energy Products, Inc. for approximately $115 million in cash
plus the assumption of approximately $35 million in debt. Phoenix manufactures
and sells several lines of products that are complementary to those of
National-Oilwell, including drilling and completion expendable products and
solids control equipment through its Harrisburg/Woolley division, as well as
certain downhole equipment. Phoenix also manufactures a line of drill bits.
The companies expect to close the transaction within thirty days.
Joel Staff, Chairman, President and CEO of National-Oilwell, stated
''Phoenix offers many products that present new opportunities to National-
Oilwell. Their line of solids control equipment is a respected addition to our
array of capital equipment that we offer to drilling contractors. The
Harrisburg/Woolley handling tool line, which will continue to be sold through
the current outlets, can also be sold through our distribution network. The
UK-based electronic guidance equipment manufacturing operation provides an
excellent expansion opportunity for our downhole segment. The addition of
Phoenix is projected to be accretive to earnings per share and cash flow for
the post closing period of 1998 and for 1999.''
The Company plans to fund the purchase through a public offering of
approximately $150 million in debt securities. A registration statement
relating to these securities has not yet been filed with the Securities and
Exchange Commission, and any offering will be made solely by means of a
prospectus.
National-Oilwell is a worldwide leader in the design, manufacture and
sale of machinery, equipment and downhole tools used in oil and gas drilling
and production, as well as in the distribution to the oil and gas industry of
maintenance, repair and operating products.
Statements made in this press release that are forward-looking in nature
are intended to be ''forward-looking statements'' within the meaning of
Section 21E of the Securities Exchange Act of 1934 and may involve risks and
uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to documents filed by the Company with
the Securities and Exchange Commission, including the Annual Report on Form
10-K for the year ended December 31, 1997, which identify significant risk
factors which could cause actual results to differ from those contained in the
forward-looking statements. |
