Seadrill’s majority-owned subsidiary, Seawell, is acquiring US firm Allis-Chalmers Energy in a deal worth some $890million, including assumed debt.
The merged companies will have some 6,500 employees in key locations worldwide and analysts forecast joint revenues of $1.3billion and a contribution to capital or EBITDA of S$195million for the current year.
The combined company will operate its drilling and well-services offerings with a global footprint covering more than 30 of the world’s key oil&gas regions, including the US, Gulf of Mexico, Brazil, Argentina, North Sea, Middle East, Africa and South-east Asia/Pacific.
The combined drilling-services offering will include platform drilling; land contract drilling; modular rigs; maintenance of drilling systems; directional-drilling technology; under-balanced drilling; facility engineering services; rig and riser inspections, and oilfield rentals. According to Seadrill, the combined entity will be able to provide its customers with fully integrated drilling services, both onshore and offshore, with more than 4,000 experienced drilling crew members and senior directional drillers. The well-services offering will include electric and mechanical wireline services; production logging services; coil-tubing services; ultrasonic investigation logging services; downhole cameras, and advanced well fishing services.
Seawell chairman Jorgen Peter Rasmussen said of the deal: “This is a major step in our quest to create a global first-class drilling and well-services company focused on assisting our customers in producing more hydrocarbons from their existing fields. We complement each other with a much improved geographical footprint, similar focus on customers and a wider range of technology and services, which we are now able to offer to our combined customer base.”
Allis-Chalmers stockholders will have the right to elect $4.25 in cash or 1.15 Seawell common shares for each share of Allis-Chalmers common stock, subject to “proration” if more than 35% of the shares elect to receive cash.
Shares of Allis-Chalmers’ existing preferred stock will be treated as common stock on an as converted basis. Based on the closing price of the Seawell common shares on the NOTC on August 12, 2010, the implied acquisition price represents a 28% premium to Allis-Chalmers’ six-month-average stock price.
Rasmussen is to be the combined company’s new CEO and president.