BJ Services Moves to Acquire Innicor Subsurface Technologies

BJ Services Company has signed a pre-acquisition agreement to acquire all of the outstanding shares of Innicor Subsurface Technologies Inc. Innicor is headquartered in Calgary, Alberta and is a designer, manufacturer and provider of tools and equipment utilized in the completion and production phases of oil and gas well development in Canada and select international markets.

Subject to the terms and conditions of the agreement, BJ Services will offer to purchase the outstanding shares of Innicor for a purchase price of CAD $2.50 in cash per share, valuing the proposed transaction at approximately USD $55 million, including outstanding debt and capital lease obligations. The transaction is expected to be completed during BJ Services' third fiscal quarter and is subject to customary closing conditions, including applicable Canadian regulatory approvals.

CEO J.W. Stewart commented, "This acquisition will increase the breadth of our completion and downhole tool product lines and will add significant manufacturing capacity. The combination of BJ's current completion tool capabilities and Innicor's completion tool product line, manufacturing capabilities and distribution networks significantly strengthens our ability to meet our customers' needs."