Cooper Cameron to Acquire Valve Manufacturer
September 01 2005 - 5:00PM
PR Newswire (US)
HOUSTON, Sept. 1 /PRNewswire-FirstCall/ -- Cooper Cameron
Corporation (NYSE:CAM) has agreed to purchase certain businesses of
the Flow Control segment of Dresser, Inc. for approximately $224
million in cash, subject to final adjustments and other matters.
The transaction is expected to close during the fourth quarter of
2005, subject to regulatory approval. The companies previously made
a Hart-Scott-Rodino filing, and are now responding to a second
request from the Department of Justice for additional information
on certain product lines. The businesses being acquired serve
customers in the worldwide oil and gas production, pipeline and
process markets, and their product offerings include ball valves,
check valves, actuators, gate valves and plug valves. Product
brands include Grove, TK and Wheatley, among others. The businesses
being acquired have facilities in Italy, Canada, Germany, the
Netherlands, the United Kingdom, Brazil and the United States.
Revenues for the acquired businesses were approximately $400
million in 2004 and are expected to increase to approximately $480
million in 2005. The acquired operations have been performing at
slightly better than breakeven operating income. Cooper Cameron
Chairman, President and Chief Executive Officer Sheldon R. Erikson
said, "These operations will be combined with our Cooper Cameron
Valves business, further confirming CCV's role as a primary
supplier of valves and related equipment and services to the oil
and gas industry." Erikson noted that the acquisition will likely
have only a modest impact on Cooper Cameron's earnings per share
during 2005, due to the timing of the closing and the expectation
that the near-term earnings contribution will essentially be offset
by the costs associated with integrating the acquired facilities
with CCV's current operations. "This is one of the more ambitious
acquisitions we have undertaken," Erikson said, "and we expect the
combination of these businesses to favorably impact our
profitability in 2006, after adjusting for one-time integration
costs." Erikson said that the integration process will be ongoing
throughout 2006 and into early 2007. In conjunction with this
announcement, Cooper Cameron will host a conference call tomorrow
(September 2, 2005) at 9:00 am Eastern time (8:00 am Central) to
discuss the acquisition. The call will be broadcast over the
internet via the Company's website at http://www.coopercameron.com/
, or may be accessed by dialing 201-689-8261 approximately ten
minutes prior to the start time. The call will be archived for one
week, and will be available on the Company's website or by
telephone at 201-612-7415, replay account number 3342, replay
conference ID number 167913. Cooper Cameron Corporation is a
leading international manufacturer of oil and gas pressure control
equipment, including valves, wellheads, controls, chokes, blowout
preventers and assembled systems for oil and gas drilling,
production and transmission used in onshore, offshore and subsea
applications, and provides oil and gas separation, metering and
flow measurement equipment. Cooper Cameron is also a leading
manufacturer of centrifugal air compressors, integral and separable
gas compressors and turbochargers. Website:
http://www.coopercameron.com/ In addition to the historical data
contained herein, this document includes forward-looking statements
regarding performance of the acquired operations and the impact of
the acquisition on the future profitability of the Company, made in
reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The Company's actual results may
differ materially from those described in forward-looking
statements. Such statements are based on current expectations of
the Company's performance and are subject to a variety of factors,
not under the control of the Company, which can affect the
Company's results of operations, liquidity or financial condition.
Such factors may include overall demand for the Company's products;
changes in the price of (and demand for) oil and gas in both
domestic and international markets; political and social issues
affecting the countries in which the Company does business;
fluctuations in currency markets worldwide; variations in global
economic activity; and changes in the financial markets, the
satisfaction of the closing conditions for the contemplated
acquisition, the future performance of the businesses to be
acquired and the costs and timing associated with the integration
process, as well as those factors described from time to time in
our filings with the Securities and Exchange Commission. In
particular, current and projected oil and gas prices directly
affect customers' spending levels and their related purchases of
the Company's products and services. Changes in oil and gas price
expectations may also lead to changes in the Company's cost
structure, staffing or spending levels. Because the information
herein is based solely on data currently available, it is subject
to change as a result of changes in conditions over which the
Company has no control or influence, and should not therefore be
viewed as assurance regarding the Company's future performance.
Additionally, the Company is not obligated to make public
indication of such changes unless required under applicable
securities laws and regulations. DATASOURCE: Cooper Cameron
Corporation CONTACT: R. Scott Amann, Vice President, Investor
Relations of Cooper Cameron Corporation, +1-713-513-3344 Web site:
http://www.coopercameron.com/
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