Parker Drilling acquires International Tubular Services Limited
HOUSTON -- Parker Drilling Company has announced its acquisition of International Tubular Services Limited and certain affiliates (ITS), subsidiaries of ITS Tubular Services (Holdings) Limited, a privately-held international rental tools and well services company.
The acquisition significantly expands Parker’s Rental Tools business to include ITS’ customer base in growing international markets and additional well services. The business combination also creates opportunities to increase financial performance by leveraging operating costs and realizing tax benefits.
ITS is an independent provider of rental tools and well services with 2012 annual revenues of $119 million. Principal activities are renting drilling tubulars and pressure control equipment, and providing casing running and fishing services. ITS serves E&P companies, drilling contractors and service companies from 22 operating facilities, primarily located in the Middle East, Latin America, UK and Europe, and the Asia-Pacific region. Parker is recognized as an international drilling contractor and drilling services and rental tools provider.
Parker paid $125 million for ITS. An initial purchase price of $101 million was paid at the closing and an additional $24 million was deposited into an escrow account, which will either be paid to ITS Tubular Services (Holdings) Limited as additional purchase price when certain consents are obtained or, in certain circumstances, released to Parker. The transaction was financed with a $125 million term loan provided by Goldman Sachs Bank USA.
For this transaction, Goldman, Sachs & Co. acted as financial advisor, Ernst &Young provided advisory services, and Baker Botts acted as Parker’s legal advisor.