The acquisition brings together two of the world's leading independent tong manufacturers: McCoy's long-established Farr Canada in Edmonton and technology leader Superior's line of Clincher Tongs. Superior has operated in Broussard, Louisiana since its incorporation in 1983 and currently employs approximately 140 people. Together Superior and Farr have a significant global presence in most types and size ranges of power tongs and more than 80 active patents and patent applications worldwide; thus making them the world's leading independent hydraulic tong manufacturer.
The transaction included the acquisition of Precision Die Technologies, L.L.C.. PDT, also located in Broussard, was established in 2005 to manufacture dies and inserts for oil field tools such as slips, elevators and power tongs. These dies are recurring revenue consumables with worldwide application. PDT makes both conventional dies as well as patented grit faced dies which result in less damage to corrosion resistant tubulars.
Mr. David Buck, President of Superior, will remain active in the business and has signed a 3 year employment agreement. He has stated "Superior and PDT will remain focused on our customers and maintain the quality service our customers have come to value both internationally and domestically." Mr. Dan Bangert, Superior General Manager, Mr. Jeff Daigle, PDT General Manager and all senior management of Superior and PDT will remain intact.
"We are pleased to welcome Superior and PDT's outstanding employees and patented product technology to the McCoy family" said Mr. Jim Rakievich, McCoy President and CEO. "This transaction gives us a strong presence in the important U.S. market and is another logical step toward McCoy's goal of being the market leader in each of our operating segments. In addition, we expect this acquisition to be accretive to both EBITDA ("earnings before interest, tax, depreciation and amortization") and earnings per share based on historical unaudited financials".
"We believe that the Superior/PDT strengths in non-marking tongs, drilling tongs and dies and inserts are very complementary to Farr's strengths in casing tongs and torque turn computers" said Mr. Ted Redmond, McCoy's Vice-President of Energy Products & Services.
Houston based Paragon Advising acted as financial advisors for Superior and Precision in connection with this acquisition.
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