Grifco International to Acquire Global Oil Tools
Grifco International, Inc. has signed a letter of intent pending a favorable due diligence review to acquire Global Oil Tools, Inc. for $4.5 Million in cash and stock.
Global Oil Tools, Inc. specializes in the manufacture of wireline tools, downhole production equipment and surface equipment. All tools manufactured by Global are interchangeable with major service company tools, providing greater acceptability and useage in inventory and field operations. Global has serviced wireline companies along the gulf coast and internationally for the past 27 years and boasts some of the largest clients in the oil and gas industry, having built a reputation over the years as a dependable and capable manufacturer.
Global is equipped with state-of-the-art machinery and produces a complete line of more than 6,000 tools for its clients. The management of Global Oil tools is known and respected throughout the industry with over 150 customers both domestically and internationally. Global has $1.2 million in inventory, $2.2 million in assets, $800,000 works in progress, $400,000 accounts receivable, and should add over $1.2 million in net profit to Grifco in the next 12 months.
Global is ISO (International Organization for Standardization) certified and API (American Petroleum Institute) registered. ISO 9000 has become the international reference for quality management requirements in business-to-business dealings. API registration and ISO certification are an indication of Global's performance as a world-class support organization. Global's strength lies in its quality control and strict adherence to the ISO regulation within its production facility, and is the greatest reason for Global's future success as part of Grifco International.
In addition to having a complete line of wireline tools and API/ISO qualifications, Global is recognized as a "blow out" preventer; Global manufactures a line of tools that prevent blow outs on oil and gas wells. Blow out prevention works by shearing the pipe and closing in the well so the operator can control and let out the pressure in a controlled environment instead of erupting.
Presently, Grifco International is performing due diligence on Global Oil. Pending a favorable review, the purchase of Global Oil Tools, Inc. should be finalized within 60 days.
Global Oil Tools, Inc. maintains an ongoing commitment to providing materials and services which meet or exceed our customer expectations. This is accomplished by utilizing qualified, trained personnel, the latest equipment and technology, and adhering to strict procedures and practices which assure compliance with this commitment to quality.
Global Oil Tools is ISO 9001 and A.P.I. Spec. 14A certified and our Quality Assurance Program conforms to all specifications set forth in ISO 9001 (ANSI/ASQC Q91) and A.P.I. Spec. 14A. We have strict quality control standards, starting with the purchase of raw materials, through the manufacturing process, the inspection process, and the shipping process. We maintain complete traceability on every product we manufacture.
Grifco International, Inc. is a leading provider of oil and gas services equipment, specializing in the conception, architecture, and development of tools for the coil tubing, wire line, and snubbing industry throughout the U.S., China, Mexico and South America. Grifco's patented products are known and used throughout the world. In addition to our patented tools, Grifco designs and manufactures over 350 products for the Oil and Gas industry.
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