Oil Patch Bits: Nabors announces Superior Well Services merger

Nabors Industries Ltd. said Aug. 9 that it has entered into a definitive merger agreement with Superior Well Services Inc., whereby Nabors will acquire Superior.

The agreement contemplates that Nabors will commence a tender offer for all outstanding shares of Superior common stock at $22.12 per share in cash in accordance with the merger agreement. The transaction is valued at approximately $900 million. “For some time now, we have evaluated integrating more service offerings into our business, particularly internationally. Although we expect this acquisition by itself to be significantly accretive to 2011 results, our major motivator was the opportunity to leverage this well respected franchise into a global force utilizing our extensive international footprint and resources,” said Gene Isenberg, Nabors chairman and CEO. “Superior Well Services possesses one of the newest fleets in the industry with over 430,000 hydraulic fracturing horsepower. This high quality fleet is operated by a very capable, well managed organization that can quickly become a substantial unit of Nabors. This transaction also provides good value to the Superior Well Services stockholders as the offer price represents an attractive premium to the 30-day average closing stock price.”