Today on Offshore Technology International

ESCO Corporation announces planned acquisition of Ulterra Drilling Technologies

Ulterra designs and manufactures polycrystalline diamond compact drill bits used in the construction of oil and gas wells.

ESCO Corporation today announced that it has entered into a definitive purchase agreement to acquire all of the outstanding equity interests of Ulterra Drilling Technologies, L.P. for approximately $325 million in cash, subject to customary closing adjustments.

Ulterra designs and manufactures polycrystalline diamond compact drill bits used in the construction of oil and gas wells. Headquartered in Fort Worth, Texas, Ulterra employs approximately 400 people and has manufacturing operations in Fort Worth and Leduc, Alberta, Canada.

Ulterra will operate as a separate division of ESCO Corporation focused on oil and gas consumables.

Cal Collins, CEO and President of ESCO Corporation, says: "This acquisition allows ESCO to leverage Ulterra’s deep expertise in the drilling industry and to capitalize on the growing oil and gas sector in North America."

The acquisition is expected to close on or around 31 August 2012 upon satisfaction of customary closing conditions. The transaction has received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Wells Fargo Securities served as ESCO’s financial advisor and Baker Botts acted as ESCO’s legal advisor for the transaction.