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National Oilwell Varco Inc., the Houston-based oilfield equipment and services firm, has announced that it will continue with its plans to become one of the largest independent equipment services companies by buying Robbins & Meyers Inc. for $2.5 billion.
The acquisition comes after the second quarter earnings report confirmed six acquisitions by Oilwell Varco; although this will be the largest since its purchase of Grant Prideco in 2008.
Pete Miller, the CEO of National Oilwell Varco, stated that “Robbins & Myers Board of Directors believes that the proposed transaction with National Oilwell Varco represents a compelling value for our shareholders. We feel that our combined manufacturing infrastructure and portfolios of technology will further advance our presence in the oil and gas markets we serve. We are extremely excited about this combination and look forward to welcoming a very talented group of employees into the National Oilwell Varco family.”
National Oilwell Varco will pay $60 for each of the 42.4 million shares of Robbins & Myers, a premium of 28% on Wednesday’s closing price of $46.80.
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com