KKR to Buy Samson for $7.2B
An investor group consisting of Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR"), Natural Gas Partners ("NGP"), Crestview Partners ("Crestview") and Itochu Corporation ("ITOCHU"), together comprising "the Investor Group," announced the signing of a definitive agreement to acquire Samson Investment Company ("Samson"), one of the largest private exploration and production companies in the United States, for $7.2 billion.
Under the terms of the agreement, the Investor Group will acquire all of Samson's assets with the exception of its onshore Gulf Coast and offshore deep water Gulf of Mexico assets, which will continue to be owned by the Schusterman family.
"We are very excited to support the continued growth of Samson. The Schusterman family has built a remarkable company with an extraordinary culture. We feel very fortunate to have the opportunity to carry on their commitment to employees, to communities, and to the safe and profitable development of domestic energy resources," said Henry Kravis, Co-founder and Co-CEO of KKR.
"We had two guiding principles — we wanted a partner who would value both our assets and our people. This group demonstrated its commitment to both. They recognize that maintaining our culture will best enable Samson to retain and build the strong team we have and thereby continue to profitably grow our asset base," said Stacy Schusterman, CEO of Samson.
As part of the transaction, the Investor Group has committed to keep the company's headquarters in Tulsa, Oklahoma, where the Company and its employees have deep ties to the community in which they work and operate.
Mr. Kravis, a native of Tulsa, stated, "For Samson, Tulsa is home. It has always been a Tulsa company, and it will remain a Tulsa company. Samson is truly a special company with a highly experienced and talented team of managers and employees with a stellar track record of success."
"While Samson's employees and management will most certainly miss working with Stacy and Lynn Schusterman, we are very pleased that KKR, NGP, Crestview and ITOCHU are the partners that Stacy chose. Throughout this process, they have consistently demonstrated that they value the culture and the team that we created. I am confident that with their partnership, Samson will continue to prosper, provide rewarding careers and be an outstanding corporate citizen in each of the communities in which we work," said Chief Operating Officer David Adams.
Upon completing the sale, David Adams will be named CEO of Samson and the company will be renamed Samson Resources.
The agreement is subject to regulatory approval and customary closing conditions and is expected to be completed by the end of the fourth quarter 2011.
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