National Oilwell Varco Inc. has an agreement to buy Robbins & Myers Inc. in a $2.5-billion deal — all in cash. Houston-based NOV designs and manufactures equipment and components used in oil-and-gas drilling and refining, while Robbins produces valve controls and grinders engineered equipment and systems for energy, chemical, and industrial markets.
Robbins & Myers’ product lines include Chemineer, Moyno, and Pflauder Reactor Systems, along with R&M Energy Systems and T3 Energy Services. It has 3,400 employees and operates in 15 countries.
If the deal is completed, it’s a combination that would take advantage of the sustained expansion in energy exploration and the subsequent handling and processing of oil and natural gas.
"Robbins & Myers has many complementary products with those National Oilwell Varco currently offers the industry,” stated Pete Miller, chairman, president, and CEO of National Oilwell Varco. “I am particularly enthusiastic about the prospect of incorporating their downhole tools, pumps, and valves into National Oilwell Varco Petroleum Services & Supplies and Distribution & Transmission segments.
“We feel that our combined manufacturing infrastructure and portfolios of technology will further advance our presence in the oil and gas markets we serve,” Miller continued.
NOV is offering $60.00/share for each of the estimated 42.4 million shares outstanding of Robbins & Meyers. Directors of both firms have endorsed the acquisition, and M.H.M. & Co. Ltd, Robbins & Myers' largest shareholder with approximately 10% of the outstanding common shares, also favors the transaction. The merger partners indicated they expect closing in Q4 2012.