Smith International Buying W-H Energy Services
Oilfield services provider Smith International Inc. plans to buy W-H Energy Services in a deal valued at roughly $3.2 billion. The combination should broaden Smith’s offerings in key drilling services markets.
Smith will pay $56.10 cash and 0.48 Smith share for each W-H Energy Inc. share outstanding. Based on Smith’s closing price Monday, the deal values W-H at about $93.55 per share, a 9.4 percent premium to its close.
W-H Energy shares rose $8.16, or 9.5 percent, to $93.70 in afternoon trading. Earlier they hit a new high of $94.21. Smith shares added 45 cents at $78.47.
Calyon Securities analyst Mark Urness called the deal “attractive,” since W-H products complement Smith’s product mix.
“We believe the addition of W-H Energy’s product and service lines is a logical extension of Smith’s current product portfolio and provides strong synergies,” Urness wrote in a note to investors.
