Oil States announces sale of tubular services business for $600 million
HOUSTON -- Oilfield services company Oil States International has sold Sooner, Inc. and its subsidiaries to Marubeni-Itochu Tubulars America for $600 million in aggregate cash consideration. Sooner comprised the entirety of the company's Tubular Services segment, and provides OCTG distribution and related services. The transaction is subject to customary post-closing adjustments, including final working capital determination. Oil States expects to use the net proceeds to repay outstanding debt, and for general corporate purposes, including share repurchases.
In connection with the sale of Sooner, the company's board of directors has increased the authorized share repurchase program from $200 million to $500 million. The share repurchase program expires on September 1, 2014. Oil States presently has approximately 55.2 million shares of common stock outstanding. With the increased authorization, the company has approximately $472.9 million remaining under the program. The repurchases may be effected from time to time, in accordance with applicable securities laws, through solicited or unsolicited transactions in the market, or in privately negotiated transactions.
Subject to applicable securities laws, such purchases will be at times and in amounts as the company deems appropriate.
In connection with the Sooner transaction, Simmons & Company International provided a fairness opinion to the board of directors of Oil States.