National Oilwell Varco to acquire CE Franklin
NOV subsidiary to buy CE Franklin for $240 million.
CALGARY—National Oilwell Varco Inc.’s (NOV) subsidiary, NOV Distribution Services ULC, has entered into an agreement to buy CE Franklin, a distributor of industrial supplies, for $240 million.
“This transaction brings…the opportunity for our organization to integrate with a global leader to provide a strong platform for enhanced client service and expanded opportunities for our employees,” Michael West, president and chief executive officer (CEO) of CE Franklin, said.
Based in Edmonton, Alta., CE Franklin distributes pipe, valves, flanges, fittings, production equipment, tubular products and other general industrial supplies to Canadian industrial clients, mostly in the oil and gas sector.
NOV designs, manufactures and sells equipment and components used in oil and gas drilling, production operations, the provision of oilfield services, and supply chain integration services to the upstream oil and gas industry.
“The addition of CE Franklin to NOV’s Canadian distribution operations will broaden our product offering and customer base, while strengthening our combined abilities to serve all of our customers,” Pete Miller, NOV’s chairman, president and CEO, said.
“We expect CE Franklin’s high level of service and support to enhance our opportunities to provide a wide range of products to the growing Canadian marketplace, for the benefit of both our customers and employees.”
At least 66 per cent of CE Franklin’s shareholders must agree to the acquisition for the deal to go through. A vote is expected in mid-July. The agreement is also contingent on customary court and regulatory approvals.