Superior Energy Services has announced an agreement to acquire Complete Production Services for $2.7 billion.
The boards of directors of both companies have unanimously approved a definitive merger agreement combining the two companies into a diversified mid-cap oilfield services company.
New Orleans, Louisiana-based Superior Energy Services was founded in 1989 as an oilfield products manufacturing company before branching out into services.
Headquartered in Houston, Texas, Complete Production Services is a leading oilfield service provider focused on the completion and production phases of oil and gas wells.
"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," said David Dunlap, Superior's president and chief executive officer.
"We anticipate that the proposed merger will also assist us in more rapidly executing our stated strategy of international expansion as the enhanced earnings and cash flow capacity of the combined entity can provide incremental capital and other resources to deploy in international markets.”
Joe Winkler, chairman and chief executive officer of Complete added: "This transaction provides Complete shareholders substantial value for their shares and gives them the opportunity to participate in the upside potential from both a larger position in the North American market area and exposure to growth in international markets.
“Together, we will possess the scale and offer the range of services necessary to compete successfully on the global stage. I believe our talented employees, with their industry-recognized reputation for technical expertise and operational excellence, will immediately add value to Superior's operations. We look forward to working with Superior to realize all of the benefits of this combination, and its exciting portfolio of projects, for our shareholders, customers, employees and partners."
The combined company will retain the name Superior and will be led by David Dunlap. The Superior board of directors will be expanded to include two independent Complete Board members.
The merger is subject to the approval of both Superior's and Complete's stockholders as well as other customary approvals, but the companies expect the transaction to close as soon as the end of this calendar year.
