Ensco Acquires Atwood Oceanics, Lays Off Staff
London-based Ensco plc completed its acquisition of offshore driller Atwood Oceanics in an all-stock deal Oct. 6, resulting in dozens of layoffs and a planned closing of Atwood’s Houston office.
In a letter to the Texas Workforce Commission (TWC) dated Oct. 5, Ensco said 79 employees would be laid off from Atwood’s Houston headquarters between October 2017 and March 2018.
“To the extent the company is unable to provide 60 days of notice to such affected employees, the company will provide them with at least 60 days of full pay and benefits in lieu of such notice,” the letter stated.
All terminations are expected to be permanent.
The acquisition was the first major M&A activity offshore after the industry downturn. Under the terms of the deal, Atwood shareholders will receive 1.6 shares of Ensco for each share of Atwood stock they own. Ensco and Atwood shareholders will end up owning 69 percent and 31 percent, respectfully.
“Today is an important day in our company’s history. Ensco has used timely acquisitions to grow into one of the leading offshore drilling companies, and the acquisition of Atwood is another major milestone in our progression,” Ensco president and CEO Carl Trowell said in a press release.
Calls and emails to Ensco were not returned as of press time.
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