Cameron to Acquire KB Industries
September 23 2008 - 7:30AM
PR Newswire (US)
HOUSTON, Sept. 23 /PRNewswire-FirstCall/ -- Cameron (NYSE:CAM) has
entered into an agreement to acquire KB Industries, an Odessa,
Texas-based manufacturer of blowout preventers (BOPs) and BOP
surface control systems, for approximately $85 million in cash. The
transaction is expected to close during the second half of 2008,
subject to regulatory approvals. KB manufactures BOPs under the
Townsend brand name, and BOP surface control systems under the
Burnsco brand name, for use on land-based drilling rigs in the
United States and Canada, and also provides replacement parts and
service under the Melco brand name. Their 2008 full-year revenues
are expected to be approximately $45 million. Cameron President and
Chief Executive Officer Jack B. Moore said KB's business will
operate as part of the Drilling Systems division within Cameron's
Drilling & Production Systems group. "The addition of KB's
business and the Townsend, Burnsco and Melco brands to Cameron's
product offerings provides us with a broader exposure in the
drilling market and access to a wider range of customers," Moore
said. "We expect to build on KB's competitive strengths and also
expand their product reach to international markets through
Cameron's network and distribution channels. Ken Burns and his team
have more than thirty years of experience in running an
organization that is known for its focus on quality and service,
and we are pleased to have them join Cameron's Drilling Systems
organization. We anticipate that this acquisition will be
immediately additive to Cameron's earnings." Cameron (NYSE:CAM) is
a leading provider of flow equipment products, systems and services
to worldwide oil, gas and process industries. Website:
http://www.c-a-m.com/ In addition to the historical data contained
herein, this document includes forward-looking statements regarding
the 2008 expected revenues of KB, as well as the impact of the
acquisition of KB 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 actual results of the
Company and KB may differ materially from those described in
forward-looking statements. Such statements are based on current
expectations of performance and are subject to a variety of
factors, not under the control of KB or the Company, which can
affect results of operations, liquidity or financial condition.
Such factors may include overall demand for KB's and the Company's
products; changes in the price of (and demand for) oil and gas in
both domestic and international markets; raw material costs and
availability; political and social issues affecting the countries
in which the Company does business; variations in global economic
activity; and changes in the financial markets. 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: Cameron CONTACT: R. Scott Amann, Vice President,
Investor Relations of Cameron, +1-713-513-3344 Web site:
http://www.c-a-m.com/
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