In an all-stock transaction, it has been announced that Nabors Industries, Ltd. has purchased Tesco Corporation, another firm in the oil industry. The transaction should close in the fourth quarter of 2017. The deal values Tesco common stock shares at $4.62 each which is a 19% premium over what it was trading for the day the deal was announced. Once the transaction is completed those with shares in Tesco will instead own shares in Nabor Industries at an exchange rate of 1 share of Tesco equaling 0.68 of a share in Nabors Industries.
Nabors Industries has the largest land drilling fleet in the world. They also provide technology, equipment, and services to companies engaged in offshore drilling projects. Tesco manufactures technology-based solutions for which they also provide their services. The deal has a lot of synergies and will result in Tesco’s existing tubular services business seeing a large benefit once the deal is completed.
Once the deal is completed it is expected that the combined company will save $20 million in the first year in operating costs. In future years they expect this to increase to about $30 million to $35 million in savings.
The chairman, CEO, and president of Nabors Industries, Anthony Petrello, said in a statement that the deal between his company and Tesco was part of the strategy he presented in November 2016 at the company’s Analyst Day. He says that in the future drilling rigs will serve as the main delivery platform for rig services to learn more about us: https://www.linkedin.com/in/anthony-petrello-1335b097 click here.
Anthony Petrello has been at Nabors Industries since 1991. Before that he was a lawyer in New York City at a prestigious law firm for which he was the managing partner. He is a director at another company in the oil industry, Stewart & Stevenson LLC. He is also a director at Hilcorp Energy Company.
Anthony Petrello and his wife have a daughter who suffers from cerebral palsy. He is heavily involved in finding new therapies to treat this disorder. As part of his efforts he serves on the Board of Trustees for the Texas Children’s Hospital. He also spends time advocating for both research and clinical programs for children who suffer from neurological disorders.