Houston, Texas-based CE Franklin Ltd., a distributor of pipe, valves, flanges, fittings, production equipment, tubular products and other general oilfield supplies to oil and gas producers in Canada, announced Wednesday that it has entered into an arrangement agreement with NOV Distribution Services ULC (NDS), a subsidiary of National Oilwell Varco, Inc. NDS will acquire CE Franklin for C$12.75 cash per common share, totaling approximately C$240 million. The consideration per common share represents a 36 percent premium to the closing price of the common shares on the TSX on May 30, 2012.
Mr. Pete Miller, NOV's Chairman, President and CEO, said, "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."
Under the arrangement agreement, CE Franklin has agreed that it will not solicit, initiate or participate in any discussions concerning any other acquisition proposals subject to the ability of the CE Franklin Board to respond to superior proposals.