$2.5-Billion Merger in Oilfield Equipment Sector

Aug. 14, 2012
NOV manufactures equipment, components for oil-and-gas drilling, refining Robbins & Myers produces valve controls, engineered parts for energy, chemicals, etc.

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.

About the Author

Robert Brooks | Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries. His work has covered a wide range of topics, including process technology, resource development, material selection, product design, workforce development, and industrial market strategies, among others. Currently, he specializes in subjects related to metal component and product design, development, and manufacturing — including castings, forgings, machined parts, and fabrications.

Brooks is a graduate of Kenyon College (B.A. English, Political Science) and Emory University (M.A. English.)