National Oilwell Announces Acquisition of Mono Pumping Products Business from Halliburton Energy Services
National-Oilwell, Inc. (NYSE:NOI) announced that it has acquired the Mono pumping products business from Halliburton Energy Services through the purchase of all the outstanding stock of Monoflo, Inc. in the United States and Mono Group in the United Kingdom.
Mono is a leading worldwide manufacturer of power sections for downhole drilling motors, downhole artificial lift pumps, progressive cavity fluid transfer pumps, grinders and screens and services the oilfield, industrial and agricultural markets.
Consideration for the acquisition included $22.65 million in cash and 3.2 million shares of National Oilwell Common Stock. National Oilwell intends to file a Form S-3 to register the newly issued shares. In 2002, the Mono business generated revenues of approximately $80 million. National Oilwell expects to contribute significant additional volume to the Mono business, and believes the acquisition will add approximately $18 million in operating profit and be accretive by more than $0.05 per share to 2003 earnings.
Pete Miller, National Oilwell's Chairman, President and CEO, said "The Mono pumping products business is an excellent addition to our non-capital equipment business. Not only is it an outstanding fit with our downhole business, it also provides significant benefits to our Distribution Services Group and Mission products business. We believe this acquisition will improve margins and operating profit for our non-capital business through the in-house manufacturing capability of drilling motor power sections and progressive cavity pumps. We are also excited about the ability to offer Mono OEM and aftermarket products through our worldwide distribution network as well as through Mono's existing distribution channels."
About National Oilweel
National Oilwell is a worldwide leader in the design, manufacture and sale of comprehensive systems and components used in oil and gas drilling and production, as well as in providing supply chain integration services to the upstream oil and gas industry.
Statements made in this press release that are forward-looking in nature are intended to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to documents filed by National Oilwell with the Securities and Exchange Commission, including the Annual Report on Form 10-K, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements.
Source: National Oilwell Varco