HOUSTON, Aug. 31, 2011 /PRNewswire/ -- Cameron (NYSE: CAM) has agreed to acquire
LeTourneau Technologies Drillings Systems and Offshore Products
divisions from Joy Global Inc. (NASDAQ: JOYG) for approximately
$375 million in cash. The boards of
Cameron and Joy Global Inc. have
unanimously approved the transaction, which is subject to customary
closing conditions. Closing is scheduled during the 4th quarter of
2011.
LeTourneau is a well established provider of drilling equipment
and rig designs and components for both the land and offshore rig
markets. LeTourneau's products include elevating systems, skidding
systems, cranes, top drives, rotary tables, draw works, mud pumps
and rig control and power systems.
"The addition of LeTourneau's portfolio of drilling equipment
and rig components adds to our existing products offering and
enhances the growth opportunities for our drilling systems
platform", said Jack Moore, Chairman
and CEO of Cameron. "We welcome
the LeTourneau team to the Cameron
family and look forward to providing our customers and theirs with
a greater suite of products and services." Moore further
stated that this acquisition is expected to be accretive to
Cameron's 2012 earnings.
Credit Suisse Securities (USA)
LLC advised Cameron in connection
with the transaction. Porter Hedges LLP are serving as legal
advisor.
Cameron is a leading provider
of flow equipment products, systems and services to worldwide oil,
gas and process industries.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Terms such as "anticipate," "believe," "estimate," "expect,"
"indicate," "may be," "objective," "plan," "predict," "will," "will
be," and the like are intended to identify forward-looking
statements. The forward-looking statements in this press release
are based on our current expectations and are made only as of the
date of this press release. In addition, certain market outlook
information is based on third-party sources that we cannot
independently verify, but that we believe reliable. We undertake no
obligation to update forward-looking statements to reflect new
information. We cannot assure you the projected results or events
will be achieved. Because forward-looking statements involve risks
and uncertainties, they are subject to change at any time. Such
risks and uncertainties, many of which are beyond our control,
include, but are not limited to overall demand for, and pricing of,
the Company's products; the size and timing of orders; the
Company's ability to successfully execute the large subsea and
drilling systems projects it has been awarded; the possibility of
cancellations of orders; the Company's ability to convert backlog
into revenues on a timely and profitable basis; the impact of
acquisitions the Company has made or may make; 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;
fluctuations in currency markets worldwide; and variations in
global economic activity. In particular, current and
projected oil and gas prices historically have generally directly
affected customers' spending levels and their related purchases of
the Company's products and services. Additionally, changes in
oil and gas price expectations may impact the Company's financial
results due to changes it may make in its 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 disclosure rules and regulations.
Website: www.c-a-m.com
SOURCE Cameron