Todco shareholders will own approximately 64% of the combined company, which will feature the world's fourth-largest jackup fleet. Hercules will operate 33 jackups, 27 barge rigs, 64 liftboats, three submersibles, nine land rigs and one platform rig, and have operations in 10 countries on five continents, and a particularly strong presence in the Gulf of Mexico.
Hercules chief executive and president Randy Stilley says, "This transaction positions Hercules Offshore as one of the leading shallow-water oil-service providers globally."
Todco president and CEO Jan Rask says, "Shareholders have an opportunity to realize cash while continuing to participate in a robust offshore drilling market through an entity with a balanced capitalization."
Hercules will fund the acquisition from cash on hand and a senior secured term-loan facility underwritten by UBS Investment Bank. UBS is lead financial advisor and Simmons & Co. International is financial advisor to Hercules; Citigroup Corporate and Investment Banking is financial advisor to Todco. The deal is expected to close in mid-2007.
• Investment firm ValueAct Capital, San Francisco and Boston, has acquired Seitel Inc., Houston, (OTCBB: SELA) for $3.70 per share in a deal valued at approximately $780 million, including $189 million in assumed debt, which it plans to retire.
Seitel provides seismic data and related geophysical services to the oil and gas industry in North America, including onshore and offshore 3-D and 2-D data. As of Dec. 31, 2005, the company owned approximately 35,000 square miles of 3-D and approximately 1.1 million linear miles of 2-D seismic data.
ValueAct Capital previously owned approximately 39% of Seitel. William Blair & Co. was financial advisor to Seitel.
• Houston-based Varel International has acquired Pendemak Industries, the company's largest and long-time Canadian-based distributor of oil and gas drillbits. Pendemak will now be known as Varel Rock Bits Canada. A price was not disclosed. Pendemak president Rod MacKenzie will be vice president, sales and operations.
"This acquisition is an important milestone in Varel's long-term strategy to be recognized as a leading global drillbit company," says Jim Nixon, president and chief executive, Varel International.
Pendemak was founded in 1980 by MacKenzie family members. MacKenzie says, "Teaming up with Varel allows the Canadian group to remain a smaller company focused on cultivating long-term relationships with our customers, while giving us full access to the technical resources and funding of a major drillbit company."
• Spitzer Industries Inc., Houston, has received recapitalization from family-owned private-equity firm The Stephens Group LLC, L
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