Wellbore Integrity Solutions (WIS), an affiliate of private equity firm Rhône Capital, and Schlumberger on Tuesday jointly announced that they have entered into an agreement for WIS to acquire the businesses and associated assets of DRILCO,
Wellbore has been established as a customer focused platform to acquire assets and technologies with the goal of providing a comprehensive suite of products and services that reduce the life cycle risk of oil, gas and geothermal wells.
As a standalone independent company with a vertically integrated structure, WIS focuses on providing quality US manufactured products delivered via a global engineering and field services footprint. Through their unique position in the energy industry, they serve the wellbore integrity needs of energy companies, service companies and local partners.
Thomas Tools, and Fishing & Remedial services, along with part of a manufacturing facility located on Rankin Road in Houston, Texas, US. The transaction is valued at approximately $400 million and is subject to regulatory approvals and other customary closing conditions. The parties expect to close the transaction by year-end 2019.
WIS expects to operate the combined businesses as a global, customer-focused provider of drilling tubulars services; tubing work strings, rentals and accessories; and fishing and remedial services for drilling, intervention and abandonment activities for the oilfield services industry.
Chief Executive Officer of WIS, David MacNeill, said “our customers will benefit from our expansion as an independent service and product supplier with a strong global footprint. We are very proud to acquire these historic companies that have been delivering quality products and services to the oil and gas industry for over 60 years.”
Adding, Kristi Vilay, the President of Bits & Drilling Tools, Schlumberger, said “the DRILCO, Thomas Tools, and Fishing & Remedial businesses will have greater opportunities for growth uniquely positioned within a strategic buyer’s portfolio.
‘’This divestiture will enable Schlumberger to focus on its core drilling strategy, including the development of automation technologies that can be enhanced by digital enablement.”
After completion of the transaction, WIS will have close to 1,100 employees and operate in 25 countries.
With 24 years of investing experience, Rhône Capital and its affiliates (“Rhône”) comprise a global alternative investment management firm with over $6.00 billion in assets under management across both her private equity business and her real estate joint venture with The We Company, the global leader in the collaborative workspace industry.
The firm focuses her private equity investments in market leading businesses with a pan-European or transatlantic presence and global growth opportunities. Rhône, which is currently investing capital from her fifth private equity fund, has invested in a diversified portfolio of companies including those in the business services, chemical, consumer product, energy, food, industrials, packaging, specialty material, and transportation sectors.
On her part, Schlumberger is the world’s leading provider of technology for reservoir characterisation, drilling, production, and processing to the oil and gas industry. With product sales and services in more than 120 countries including Nigeria, and employing around 100,000 people who represent over 140 nationalities,
Schlumberger which reported revenues of $32.82 billion in 2018, supplies the industry’s most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance.
However, the announcement includes “forward-looking statements” within the meaning of the US securities laws.
The opinions, forecasts, projections, expected timetable for completing the proposed transaction, benefits of the proposed transaction, and any other statements regarding Schlumberger’s and WIS’s future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not statements of historical fact, are forward-looking statements within the meaning of the federal securities laws.
These statements are subject to, among other things, satisfaction of the closing conditions to the agreement, the risk that the contemplated transaction does not occur, negative effects from the pendency of the agreement, and the ability to successfully integrate the acquired assets and to realize expected synergies.
Actual results may differ materially from those expected, estimated or projected. Forward-looking statements speak only as of the date of this press release, and neither party undertakes any obligation to publicly update or revise any of them in light of new information, future events or otherwise.