National Oilwell Varco To Buy Robbins & Myers For $2.5 Billion
by: Andrew Schneider, August 10, 2012 4:08:00 am
National Oilwell Varco will pay $60 per share in cash for approximately 42 million shares of Robbins & Myers. The purchase is expected to close in the fourth quarter of this year.
The deal marks the latest in a string of acquisitions by NOV over the past three years. Collin Gerry is vice president for oil service research with Raymond James.
“One of the strengths of NOV over time has been its ability to make acquisitions of smaller companies and then plug those companies into their larger footprint and really be able to drive some higher growth, essentially provide the acquired company with a larger platform for growth that NOV brings to the table.”
Both company boards have approved the transaction, but the deal requires approval by two-thirds of Robbins & Myers’ shareholders.