Smith International Acquires Star Tool
Smith International, Inc. has acquired of Star Tool Company. Star Tool provides fishing and rental tool services for customers in the U.S. Permian Basin market. Star, which will be integrated into the Smith Services business unit, operates four service locations in the West Texas/New Mexico area and employs approximately 130 personnel. The acquired operations generated revenues of approximately $17 million for the most recent fiscal year, which ended June 30, 2001.
Richard Werner, President of Smith Services, said, "This strategic acquisition provides for the expansion of Smith Services' fishing and rental tool business in the Permian Basin; plus, with the addition of the Star personnel and assets, it will expand Smith Services' existing Permian Basin remedial, re-entry and multilateral capabilities. We expect the transaction will be immediately accretive to earnings and cash flow."