Allis-Chalmers Takes Reins at American Well Control
Allis-Chalmers announced the acquisition of American Well Control for total consideration of approximately $17.2 million in cash and 1.0 million shares of Allis-Chalmers common stock. Based in Conroe, Texas, American Well Control is a leading manufacturer of premium high pressure valves used in hydraulic fracturing in the unconventional gas shale plays.
For the twelve-month period ended December 31, 2009, American Well Control generated revenues of approximately $18.5 million and estimated EBITDA of approximately $4.1 million. For the five-month period ended May 31, 2010, revenues were $9.5 million and EBITDA was $2.9 million (unaudited).
Micki Hidayatallah, Chairman and CEO of Allis-Chalmers, stated, "We believe American Well Control has the best frac valve product in the market. We welcome Richard Mitchell and Mark Albert as part of our management team. American Well Control has built a reputation for a quality product with superior service to its customers. With an existing strong position for the frac valve product in the Haynesville Shale, American Well Control intends to increase its presence in the Marcellus, Eagle Ford and Bakken Shale markets by establishing service and repair facilities side by side with Allis-Chalmers' existing locations. The acquisition of American Well Control increases Allis-Chalmers' presence in the active, onshore, non-conventional gas markets."