Lufkin Agrees To Buy Canada’s Quinn’s Oilfield Supply For $303 Mln In Cash
(RTTNews) – Lufkin Industries, Inc. (LUFK), a supplier of oil field and power transmission products, on Tuesday said it has agreed to acquire privately held Quinn’s Oilfield Supply Ltd., including certain affiliates, for about $303 million in cash.
As per the asset purchase agreement, the deal would be closed before the end of 2011, subject to certain closing conditions and regulatory approvals.
Financing for the transaction would include a combination of borrowings under an expanded revolving credit facility and a senior secured term loan, the company noted.
Lufkin expects the acquisition to be accretive to Lufkin’s earnings in 2012.
Alberta, Canada-based Quinn’s is a reciprocating rod pump manufacturer and, through its acquisition of GrenCo Industries in June 2010, also manufactures and distributes progressive cavity pumps and related equipment. The company operates two manufacturing facilities in Canada, one in the United States and 51 service locations through out North America.
John “Jay” Glick, President and Chief Executive Officer of Lufkin, stated, “The acquisition of Quinn’s continues our strategy of expanding our product portfolio in artificial lift systems, while at the same time extending our sales and service network in the increasingly active oil provinces of the United States and Western Canada.”
Lufkin said it expects to leverage its global infrastructure to introduce Quinn’s products and services to Latin America, Eastern Europe, North Africa and the Middle East. In addition, the purchase will instantly give Lufkin a significantly larger footprint in Canada.
In the deal, Simmons & Company International served as financial advisor to Lufkin Industries, while Wood Roberts, LLC and Infinity Energy Capital, LLC served as financial advisors to Quinn’s.