National Oilwell Acquires Halliburton Pumping Business Unit
|Friday, January 17, 2003
National-Oilwell, Inc. has acquired the Mono pumping products business from Halliburton Energy Services through the purchase of all the outstanding stock of Monoflo, Inc. in the United States and Mono Group in the United Kingdom. Mono is a leading worldwide manufacturer of power sections for downhole drilling motors, downhole artificial lift pumps, progressive cavity fluid transfer pumps, grinders and screens and services the oilfield, industrial and agricultural markets. Consideration for the acquisition included $22.65 million in cash and 3.2 million shares of National Oilwell Common Stock. National Oilwell intends to file a Form S-3 to register the newly issued shares. In 2002, the Mono business generated revenues of approximately $80 million. National Oilwell expects to contribute significant additional volume to the Mono business, and believes the acquisition will add approximately $18 million in operating profit and be accretive by more than $0.05 per share to 2003 earnings. Pete Miller, National Oilwell's Chairman, President and CEO, said "The Mono pumping products business is an excellent addition to our non-capital equipment business. Not only is it an outstanding fit with our downhole business, it also provides significant benefits to our Distribution Services Group and Mission products business. We believe this acquisition will improve margins and operating profit for our non-capital business through the in-house manufacturing capability of drilling motor power sections and progressive cavity pumps. We are also excited about the ability to offer Mono OEM and aftermarket products through our worldwide distribution network as well as through Mono's existing distribution channels."