(The Daily Advertiser) – Frank’s International announced Friday its $321 million acquisition of Blackhawk Specialty Tools, based in Houston and operating in Houma, the largest deal in the company’s history.
Blackhawk rents and sells onshore and offshore cementing equipment and products for well construction and is a leader in its specialty in the Gulf of Mexico, the company says on its website.
In an issued statement, Frank’s CEO Gary Luquette said, “Joining Blackhawk’s cementing tool expertise with Frank’s global tubular running services franchise will allow us to offer customers worldwide a more integrated suite of best-in-class products and services to address their well construction needs across all environments from land to shelf to deepwater.”
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In a Friday morning call, Frank’s CEO Gary Luquette said Blackhawk, founded in 2008, offers “technologically advanced products” and serves many of the same blue-chip customers that Frank’s serves. He said with the acquisition, Frank’s can offer services that can keep it on customers’ rigs longer.
Luquette suggested Blackhawk products could be used across Frank’s International’s global “footprint,” which includes work on six continents and in 60 countries. He described Blackhawk’s workforce as highly skilled.
He said the two companies would be operating “as one company” within a year. He said a combined sales force could give Frank’s some “quick wins.”
Frank’s officials said the smaller Blackhawk company generates about 10-15 percent of Frank’s annual revenues.
On Sept. 30, Frank’s announced a company layoff that affected its operations in Lafayette. The company did not disclose the number of layoffs, which was at least its fourth since the downturn in oil prices that began in 2014.
The agreement included $150 million in cash and 12.8 million shares of Frank’s stock, which sold Friday afternoon at $13.57 per share. About $80 million in Blackhawk debt paid at closing.