While Texas’ oil companies have seen their fair share of hits in recent months, a newly-announced acquisition is a step in the opposite direction. Houston-based Frank’s International, LLC has entered into a definitive purchase agreement to purchase Louisiana-based Timco Services, Inc. in a $75 million cash deal.
According to an 8-K filing with the U.S. Securities and Exchange Commission, Frank’s, a global oil services company that provides tubular services to exploration and production companies in offshore and onshore environments, will acquire privately-held Timco “in exchange for consideration consisting of $75 million in cash, subject to customary adjustments for the net working capital and the net debt positions of Timco at the time of closing and an earnout of up to $20 million payable in two separate payments of $10 million, each of which are contingent on the U.S. land rotary rig count, as reported by Baker Hughes, exceeding certain targets over prescribed time periods during the period from the 4Q of 2015 through the 2Q of 2017.”
“We believe that this acquisition provides attractive positioning for an eventual recovery in oil and gas prices,” a spokesperson for Frank’s told Rigzone. “Timco’s strong relationships with blue chip customers and limited overlap with Frank’s key customers will allow us to expand our footprint in highly active oil and gas unconventional plays – specifically Eagle Ford and Permian. Additionally, Timco’s management and culture are aligned with Frank’s and will complement our highly motivated workforce in these key areas of operation.”
The acquisition is scheduled to close in the second quarter of 2015.
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