Sources: National Oilwell Varco Inc., Houston; CP staff
The National Oilwell Varco (NOV) and Ameron boards have unanimously approved the former company’s proposed acquisition of Ameron for approximately $772 million in cash. The deal values Pasadena, Calif.-based Ameron, a longtime concrete producer but better known for composites and steel products, at $85/share—a 27 percent premium to what its shares had traded on the New York Stock Exchange leading into the July 4 weekend. Closing is subject to approval by a majority of Ameron shareholders, and could occur as early as the fourth quarter of 2011.
NOV cites worldwide operations in the design and manufacture of equipment and components for oil and gas drilling and production, plus supply chain integration services to the upstream oil and gas industry. The acquisition of a leading fiberglass pipe producer like Ameron, notes NOV Chairman Pete Miller, “will enhance the scope of solutions we offer oil and gas customers worldwide. Ameron’s marine and offshore products will expand NOV’s offering into seawater handling systems in new oil and gas drilling and FPSO vessels, and our combined oilfield composite pipe operations will benefit from purchasing efficiencies and scale.”
Acknowledging the remainder of Ameron’s portfolio—concrete and steel pressure pipe and utility poles; fabricated steel products, including wind turbine towers, plus an integrated aggregate, ready mixed and precast business in Hawaii—Miller added, “The Water Transmission Group and the Infrastructure Products Group also allow NOV to capitalize on leading positions in these industries.”
Ameron businesses have confronted a challenging environment, but hold strong positions, according to Chairman James Marlen, adding, “We have structured the businesses to capitalize on growth opportunities as markets recover. NOV has the resources to fully capitalize on established strategies and fully realize the potential of each of the Ameron businesses.”