DOW JONES NEWSWIRES
National Oilwell Varco Inc. (NOV) agreed to acquire CE Franklin
Ltd. (CFK, CFT.T) for about C$231 million, giving the manufacturer
of energy-production equipment a supplier of similar products.
National Oilwell plans to pay C$12.75 per share for CE Franklin,
a 36% premium over its Wednesday closing price on the Toronto Stock
Exchange.
CE Franklin provides products and services to the energy
industry, distributing pipes, valves, flanges, fittings and other
products. A shareholder rights plan adopted by CE Franklin in April
was terminated.
National Oilwell Varco's earnings have surged over the past year
as oil-and-gas producers boost their capital expenditures, often
spending heavily on complex equipment that can extract
harder-to-reach reserves through unconventional means like
hydraulic fracturing and horizontal drilling.
The company also has grown to become the sector's dominant
equipment maker through mergers.
Last month, National Oilwell said its first-quarter earnings
rose on broad growth in all its main business segments.
Its shares closed Wednesday at US$67.19 and were inactive after
hours. The stock is down 1.2% so far this year.
CE Franklin's U.S.-traded shares were halted.
-By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108;
ben.rubin@dowjones.com