Grant Prideco Sells to Vallourec for $800 Million

Grant Prideco has entered into a definitive agreement with Vallourec S.A. to sell three of the four business units within its Tubular Technologies and Services (TTS) segment for $800 million.

The business units included in the sale are Atlas Bradford Premium Threading & Services, TCA and Tube-Alloy, which had combined revenues of $229 million for the 12-month period ended September 30, 2007.

"With the recent consolidation in the OCTG marketplace, this transaction represents an opportunity to combine the company's leading tubular services businesses with a world-class tubular mill," said Michael McShane, chairman, president, and CEO. "The benefits of this combination have resulted in an attractive selling price for Grant Prideco."

The sale does not include the XL Systems business unit, which is also included in the TTS segment. The businesses sold represented $40.4 million, or 73% of TTS's year-to-date operating income as reported in the company's most recent earnings release. Subject to regulatory approvals, the company expects the transaction to close the latter part of 2007 or early 2008. Credit Suisse is acting as financial advisor to Grant Prideco.


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