NATCO Group to Acquire Linco-Electromatic for $23 Million
NATCO Group Inc. announced that its subsidiary had entered into a definitive agreement to acquire Linco-Electromatic, Inc., which designs, manufactures, distributes and services an extensive line of equipment used to measure oil and natural gas in custody transfer, for approximately $23 million in cash consideration, subject to certain adjustments.
Chairman and Chief Executive Officer of NATCO, John U. Clarke, said, "The acquisition of Linco provides NATCO with an opportunity to add several new product lines and services for our customers to further leverage our North American branch network and our automation and controls business. We also will gain access to new markets historically served by Linco. We are delighted that Linco's management team will be joining NATCO and look forward to adding over 100 skilled field, fabrication and marketing employees."
Bob Petty, President of Linco, said, "We are pleased to be joining NATCO. The complementary nature of our combined product and services offerings is significant. NATCO will facilitate our further expansion both in North America and globally."
Clarke added, "Linco offers a wide variety of metering hardware, electrical instrumentation, measurement services and integrated measurement systems equipped with processes for data transmission and volumetric reconciliation. Their contract field services provides opportunity to expand NATCO's field services just downstream of the wellhead. They also provide us with an entry into other market segments including transportation, refining, processing, storage and distribution. The acquisition is expected to close during the first quarter of 2008 and is expected to be accretive to NATCO's 2008 earnings."
Founded in 1967 and headquartered in Midland, Texas, Linco distributes products from over forty manufactures, including a master distribution agreement with the industry's leading meter company. The company's product offerings consist of both Linco-manufactured and third-party-manufactured equipment such as: complex skid-mounted systems which integrate various measurement devices; individual components such as meters, regulators, pressure vessels and temperature indicators; and refurbished measurement equipment. The company also provides maintenance, repair, testing and meter proving and calibration services.