Business
Weatherford to Acquire Precision Energy Services and International Drilling Divisions for US$2.28 billion;
Weatherford to Acquire Precision Energy Services and International Drilling Divisions for US$2.28 billion;.
About this update from Precision Drilling Corporation
[{"type":"text","content":"\n\n\n\n\nDeal provides enhanced service and technology offerings\n\nHOUSTON, TX, June 6 /CNW/ - Weatherford International Ltd. (NYSE:WFT)\ntoday announced that the company has signed a definitive agreement to purchase\nPrecision Drilling Corporation's Energy Services Division and International\nContract Drilling Division.\nUnder the terms of the agreement, Weatherford will pay approximately \nUS$2.28 billion, consisting of 26 million Weatherford common shares and\napproximately US$900 million in cash, based on current exchange rates. The\ncash portion of the consideration is payable in Canadian dollars. Acquired net\nbook value is about US$1.63 billion. Weatherford expects the transaction to be\naccretive to its earnings per share and cash flow per share for 2005, before\nconsideration of potential synergies.\nPrecision's Energy Services division is a global provider of cased hole\nand open hole wireline services, drilling and evaluation services (directional\ndrilling, MWD, LWD and rotary steerable systems) and production services\n(primarily underbalanced drilling). Weatherford's cased hole wireline and\nunderbalanced segments will be consolidated and strengthened by this\ntransaction. Furthermore, the transaction will substantially broaden the\ncompany's open hole wireline and directional capabilities.\nPrecision's International Contract Drilling division is an international\nland rig contractor. It became a major player in the international market\nafter its acquisition of the worldwide land drilling assets of Global Santa Fe\nCorporation in May 2004. Precision currently has 48 rigs, with a strong\npresence in the Middle East/North Africa. The land drilling assets being\nacquired are among the best in the industry and further bolster Weatherford's\nalready strong presence in the Middle East. The availability of these assets\nwill allow the company to further meet customers' bundling needs in the\nregion.\nPrecision has developed innovative technologies which Weatherford is\nanxious to harvest. Weatherford will endeavor to accelerate the growth of\nthese technologies with the full support of its worldwide infrastructure. Post-\nacquisition, the company will offer a comprehensive suite of products and\nservices with leading technology.\nIn the twelve months ended December 2004, Precision Energy Services and\nInternational Dri...