National Oilwell Varco to buy rival Robbins & Myers for $2.54 billion

US oilfield equipment group National Oilwell Varco Inc today said it will buy Robbins & Myers Inc for $2.54 billion in cash.

Houston-based National Oilwell will pay $60 per share, a 28 per cent premium to Robbins & Myers closing price of $46.80 on the New York Stock Exchange on Wednesday.

M.H.M. & Company, the biggest shareholder in Robbins & Myers with a 10 per cent stake, has agreed to tender its stake to the offer, which is expected to close in the fourth quarter.

Based in Houston, Texas, Robbins & Myers is a leading supplier of engineered, application-critical equipment and systems for global energy, chemical and other industrial markets.

The company provides products and services for upstream oil and gas markets, along with a portfolio of industrial process and flow control products. It has 3,400 employees and operates in 15 countries.

Pete Miller, chairman, president and CEO of National Oilwell, said, "Robbins & Myers has many complementary products with those National Oilwell Varco currently offers the industry. I am particularly enthusiastic about the prospect of incorporating their downhole tools, pumps and valves into National Oilwell Varco Petroleum Services & Supplies and Distribution & Transmission segments.''