Please ensure Javascript is enabled for purposes of website accessibility

Parker Drilling Acquires Tool Rental and Well Service Provider

By Rich Duprey - Apr 22, 2013 at 1:55PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

$125 million deal will increase drilling services provider's geographic and product line diversity.

In a growth move it expects to also increase financial performance by leveraging operating costs and realizing tax benefits, international drilling contractor and services provider Parker Drilling (PKD 0.00%) announced today that it has acquired International Tubular Services Limited, a privately held international rental tools and well services company.

Under the terms of the agreement, Parker paid $101 million for ITS at  closing with an additional $24 million deposited into an escrow account, for a total of $125 million. The escrow funds will be paid to ITS upon obtaining certain consents or will be released to Parker under certain circumstances. The transaction was financed with a $125 million term loan provided by Goldman Sachs.

Parker Drilling president and CEO Gary Rich said, "ITS is one of the industry's leading independent international rental tools and well service companies with a broad footprint and a strong portfolio of products and service capabilities.  By expanding our geographic presence and services offering, we are positioning ourselves to better serve the growing needs of international E&P operators and drilling contractors.

ITS had 2012 annual revenues of $119 million. It serves an extensive customer base of E&P companies, drilling contractors, and service companies in the Middle East, Latin America, Europe, and the Asia-Pacific region.

ITS CEO Joe Chandler will become vice president of Parker's international rental tools business unit.

link

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Parker Drilling Company Stock Quote
Parker Drilling Company
PKD
$6.25 (0.00%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
344%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.