The casing accessories company anticipates annual revenue in the next two years in the $15 to $18 million range and has embarked upon an aggressive production agenda to add casing accessory inventory to meet future customer demand. The acquisition will also provide both Grifco and the acquisition target the opportunity to better serve their combined customers, with the addition of distribution/inventory stock points in Wyoming, Midland/Odessa, Utah, California, and Houston.
"With the requisite due diligence process involved in any acquisition or merger, we are not yet naming the acquisition candidate until our review of the company's inventory, assets, financial statements and technology is complete and a definitive agreement is signed. We did, however, wish to inform our shareholders of this potential acquisition, given its impact on our overall operations," stated Jim Dial, President and CEO of Grifco International. "We expect the due diligence process to be completed in sixty days and, pending a favorable outcome, a definitive agreement would be entered into shortly thereafter," said Jim Dial, President and CEO of Grifco International.
The acquisition candidate services most of the major oil suppliers with casing accessories, including such items as bow spring centralizers, solid metal centralizers, inline centralizers, metal wipers and wire scrapers. These items are used in most cementing operations worldwide. The company also makes float equipment and specialty tool float equipment.
Grifco International is a leading provider of oil and gas services equipment, specializing in the conception, architecture, and development of tools for the coil tubing, wire line, and snubbing industry throughout the United States, China, Mexico, South America, the Middle East and Africa. Grifco holds and owns design rights and manufacturing facilities for producing more than 6,000 products for the oil and gas industry with more than 150 clients, boasting the biggest names in the business, including Halliburton, Exxon, and Schlumberger.
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