Cameron has entered into an agreement to acquire KB Industries, an Odessa, Texas-based manufacturer of blowout preventers (BOPs) and BOP surface control systems, for approximately $85 million in cash. The transaction is expected to close during the second half of 2008, subject to regulatory approvals.
KB manufactures BOPs under the Townsend brand name, and BOP surface control systems under the Burnsco brand name, for use on land-based drilling rigs in the United States and Canada, and also provides replacement parts and service under the Melco brand name. Their 2008 full-year revenues are expected to be approximately $45 million.
Cameron President and Chief Executive Officer Jack B. Moore said KB's business will operate as part of the Drilling Systems division within Cameron's Drilling & Production Systems group."The addition of KB's business and the Townsend, Burnsco and Melco brands to Cameron's product offerings provides us with a broader exposure in the drilling market and access to a wider range of customers," Moore said.
"We expect to build on KB's competitive strengths and also expand their product reach to international markets through Cameron's network and distribution channels. Ken Burns and his team have more than thirty years of experience in running an organization that is known for its focus on quality and service, and we are pleased to have them join Cameron's Drilling Systems organization. We anticipate that this acquisition will be immediately additive to Cameron's earnings."
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