Esco Buys Ulterra

Purchase of Fort Worth-based Ulterra, which employs about 400 people who design and manufacture polycrystalline diamond compact drill bits used in the construction of oil and gas wells.

portland-based Esco Corp. plans to purchase Ulterra Drilling Technologies LP for $325 million in cash.

Esco manufacturers industrial products for mining, infrastructure, power generation, aerospace industries. Fort Worth-based Ulterra employs about 400 people who design and manufacture polycrystalline diamond compact drill bits used in the construction of oil and gas wells. Ulterra will operate as a separate division of Esco Corp, when the deal closes, which is expected to occur around Aug. 31, 2012.

“This acquisition allows ESCO to leverage Ulterra’s deep expertise in the drilling industry and to capitalize on the growing oil and gas sector in North America,” says Cal Collins, chief executive and president of ESCO Corp. “Ulterra is a natural fit for ESCO given its culture of designing highly engineered wear products and delivering world-class service.”

The acquisition complements ESCO’s strategy to add innovative highly engineered, consumable products with strong growth potential to its existing portfolio of wear solutions. The acquisition allows Esco to gain an experienced management team, established brand and an organization with critical mass in the oil and gas industry.
Wells Fargo Securities served as ESCO’s financial advisor and Baker Botts acted as ESCO’s legal advisor for the transaction.