T-3 Completes Purchase of EEC and HP&T for $96 Million
T-3 Energy has completed the purchase of both Energy Equipment and HP&T Products, for approximately $96.4 million in cash, subject to final working capital adjustments. The acquisitions of EEC and HP&T were funded from T-3's working capital and the use of its $180 million amended and restated senior credit facility which was closed on October 26, 2007. These acquisitions evolve from T-3 Energy's growth strategy focused on improving its geographic presence and enhancing its product mix through complementary product additions.
The acquisitions of EEC and HP&T provide further evidence of T-3 Energy's commitment to developing engineered products for both surface and sub-sea applications. EEC manufactures proprietary HP&T high-performance gate valves for both drilling and sub-sea applications; a wide range of Model HPT valve manifolds, including under-balanced drilling and flow-back manifolds; proprietary Model HXE high-performance chokes; and a host of other oil and gas valve and drilling products. EEC products are predominantly manufactured in their newly expanded manufacturing center located in Houston, Texas, which is supported by HP&T's manufacturing facility in Pune, India. Along with their commitment to manufacture high quality products, EEC and HP&T continue to support a healthy product development pipeline of new innovations that should yield similar successful trends for the future.
T-3 Energy's Chairman, President and CEO, Gus D. Halas, commented, "T-3 Energy could not be more excited about the acquisitions of EEC and HP&T. These acquisitions and the addition of their management teams further solidify our strategic vision for growth. EEC and HP&T bring with them a seasoned manufacturing team with a best-in-class engineering organization that has maintained a long history of introducing innovative and industry-leading technologies. The combination of their proprietary products and extensive service capabilities promises to yield great opportunities for the future of T-3 Energy's customers."
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