To acquire company providing oilfield services in North America and southeastern Asia, gaining completion and production services, drilling services and product sales.
Superior Energy Services Inc., New Orleans, (NYSE: SPN) plans to acquire Complete Production Services Inc., Houston,, (NYSE: CPX) in a merger in a deal valued at approximately $2.35 billion in cash and stock.
Superior will pay $7 cash and issue 0.945 share per Complete Production share. Complete Production has 79.3 million shares outstanding and Superior Energy shares traded at approximately $24 at the time of the announcement. The deal represents a premium of 29% to Complete's average price for the past two months, according to Superior Energy.
Complete provides oilfield services in North America and southeastern Asia. It operates in three segments: completion and production services, drilling services and product sales. Services from the segments include completion, workover and maintenance services, downhole and wellsite services, contract drilling and specialized rig relocation and logistics services, oilfield service equipment and refurbishment of used equipment and repair work and fabrication services.
Pro forma closing and the issuance of new Superior shares, Superior shareholders will hold 52% of the merged company and Complete shareholders will hold the remaining 48%. The combined company will retain Superior’s name.
Superior president and chief executive David Dunlap says, “The combination of Superior and Complete creates a top-tier diversified oilfield services company with the products, technologies and talented people that are critical to helping our customers create value, particularly in unconventional fields in North America. Together we will have enhanced positions in large sectors for key products and services that are high in usage intensity and deemed critical by our customers during their drilling, completion and production processes.”
Complete chairman and CEO Joe Winkler says, “Together, we will possess the scale and offer the range of services necessary to compete successfully on the global stage.”
Greenhill & Co. and J.P.Morgan were financial advisors to Superior. Jones, Walker, Waechter, Poitevent, Carrere & Denegre LLP is legal advisor to Superior. Credit Suisse Securities (USA) LLC is financial advisor to Complete. Latham & Watkins LLP is legal advisor to Complete.
The deal is expected to close by year end.