Oil States Expands Rental Tool Operations
Oil States International has purchased all of the assets of Wire Line Service (Well Testing). The transaction consideration totals approximately $44.0 million consisting of cash in the amount of $41.0 million and a $3.0 million seller's note, subject to customary post-closing adjustments. For the three months ended March 31, 2007, Well Testing generated approximately $10.5 million of revenues. Oil States will fund the transaction with amounts available under its existing credit facility.
'We are very excited about closing the transaction,' stated Cindy Taylor, Oil States' president and chief executive officer. 'We continue to look to expand our rental tool operations both organically and through acquisitions to better serve our customers particularly in the key resource plays of the United States. We welcome the addition of the high quality employees, customer base and equipment of Well Testing to Oil States. We expect the transaction to provide incremental earnings in the second half of 2007 of approximately $0.04 per diluted share.
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