Core Laboratories to Acquire The Andrews Group International
HOUSTON, Nov. 18 /PRNewswire/ -- Core Laboratories (NYSE: CLB - news) announced plans to acquire all of the outstanding shares of The Andrews Group International, a Houston-based, privately held company, and closely related A.G.I. Mexicana S.A. de C. V., a privately held Mexican corporation (collectively ''The Andrews Group'' or ''AGI''). The Andrews Group, with offices in Houston, Mexico and Venezuela, provides specialized seismic data processing and interpretation, as well as other geophysical, geological and engineering services primarily to the Mexican market. Presently, AGI is conducting several large integrated field studies in Mexico aimed at increasing daily production and maximizing total hydrocarbon recovery and is expanding into Venezuela and other Latin American countries. The acquisition continues to strengthen Core's ability to offer a wider range of reservoir management technologies while increasing market penetration in Latin American oilfield provinces.
The Andrews Group, which recorded more than $15 million in 1997 revenues, will be acquired in a stock-for-stock transaction. Core will issue 715,000 shares of common stock and assume approximately $2 million in debt. It is expected that the transaction will be accounted for as a pooling of interests and is expected to be on a tax-free basis. As The Andrews Group International name is synonymous with leading edge technology and the highest level of service quality, the company will continue to operate under its trade name in Latin American markets. Completion of the transaction is expected by 31 December 1998, pending additional due diligence and other customary closing conditions.
''We are pleased to be merging with Core Laboratories as it will increase our growth prospects, offer our employees enrichened career opportunities and provide our clients access to a wider range of technologies and services,'' said Robert P. Andrews, the founder, President and CEO of AGI. ''Moreover, Core's recognition of the value of AGI's multicultural approach to the Latin American markets will create additional growth opportunities and market penetration for all of Core Lab's technologies,'' Andrews added.
The Andrews Group was founded in 1987 and currently has five regional offices in Mexico, an office in Caracas, Venezuela, and a main office in Houston. The company currently employs 165 personnel, 120 of which are degreed, multilingual and multicultural. AGI is a preferred provider of seismic, geological and engineering technologies in Latin America as reports, data bases and field study reports are presented in the client's native language. This enables more effective and efficient applications of the studies to maximize production rates and ultimate hydrocarbon recovery.
The success of this multicultural approach to the Latin American markets is recognized by the many companies which AGI represents in Mexico. Amongst others, The Andrews Group represents industry leaders such as Input/Output, Petroleum Geo-Services, Landmark Graphics and PetroScan. The AGI-Core combination should strengthen AGI's ability to represent these and other oilfield services companies that wish to participate in this important Latin American market.
''Core Laboratories is excited about joining forces with AGI as we continue to increase our exposure to new technologies and international markets where growth is the highest,'' said Core President and CEO David M. Demshur. ''Two years ago Core generated less than one million dollars in revenue from Mexico. In 1998, Mexico-related revenues should exceed $30 million dollars and AGI's multicultural approach will better position Core for continued growth in 1999,'' Demshur stated in closing.
Core Laboratories N.V. is a leading provider of proprietary and patented reservoir description, production enhancement, reservoir management and reservoir monitoring services. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. In addition, Core Laboratories manufactures and sells petroleum reservoir rock and fluid analysis instrumentation and other integrated systems. The Company's outlook is subject to various important cautionary factors as more fully described in the Company's 1997 Form 10-K filed March 31, 1998, and in other securities filings.
SOURCE: Core Laboratories N.V. |
