Story By Robert Stewart | UpStreamOnline.com | New York-listed driller Nabors Industries will acquire competitor Parker Wellbore for nearly $360 million, the companies have announced.
Nabors will acquire all of Parker’s common shares in exchange for 4.8 million of its own shares, subject to a share price collar. With a stock price of $74.80 at market close Tuesday, the deal is worth about $359 million. Nabors will also assume $100 million in Parker debt.
The merger is expected to close in early 2025, subject to shareholder and regulatory approvals.
Nabors expects the transaction to add large-scale, high-performance tubular rental and repair services to its portfolio while strengthening its international presence. It also hopes to realize $35 million in savings, most of which should occur within the first year of closing.
“This transaction brings together two of the storied names in our industry. The acquisition of Parker expands our high margin, capex-light Nabors Drilling Solutions global business, while solidifying the geographical footprint of our international drilling rig business,” Nabors chief executive Anthony Petrello said in a statement.
“Over the past five years, Parker has achieved an impressive record of increasing results and we expect this expansion to continue. We are excited to welcome Parker’s highly capable team to Nabors. With Nabors’ extensive global technology platform, we are confident we will extend Parker’s success even further.”
Parker chief executive Sandy Esslemont said Nabors is an “ideal partner”.
“Parker’s leading position across key product lines and geographic markets aligns neatly with the Nabors’ footprint,” Esslemont said in a statement. “Our portfolio and technology offerings combined with Nabors’ leading drilling solutions business and strong capital structure are expected to provide significant benefits to both Nabors’ and Parker’s customers, investors and the industry at large.”
