National Oilwell Varco to buy Ameron International for $772 million

National Oilwell Varco, a US-based manufacturer of land-based and offshore oil drilling rigs is acquiring fibreglass-composites pipe maker  Ameron International, for $772 million to expand in the booming offshore exploration business.

Under the deal announced yesterday, Ameron shareholders will receive $85 cash per share, a premium of 28-per cent to the company's Friday close of $66.27.

Ameron is a multinational manufacturer of highly-engineered products and materials for the chemical, industrial, energy, transportation and infrastructure markets. It is a leading producer of fiberglass-composites pipes for transporting oil, chemicals and corrosive fluids, and specialised materials and products used in infrastructure projects, such as poles and construction materials.

The Pasadena, California-based company is also a leading provider of water transmission lines and fabricated steel products, such as wind towers. Ameron, which has  25 manufacturing locations globally,  with operations in North America, South America, Europe and Asia, and presence through affiliated companies in the Middle East.

The company reported net profit of $46.3 million last year on revenues of $503 million.

National Oilwell, which has grown through a series of acquisitions, has made $14 billion in such deals since the past five years. It says it is looking at the potential growth in offshore oil production as oil majors master deep sea drilling technology.