Oil services firm Frank's International to buy Blackhawk Specialty Tools for $321 mn

Oil services company Frank's International NV yesterday struck a deal to buy Blackhawk Specialty Tools for around $321 million in order to add specialty cementing and well intervention services and products to its portfolio.

Under the terms of the deal, Frank's International will pay $150 million in cash and about 12.8 million in shares to Blackhawk's private equity owner Bain Capital.

Based on the Frank's closing 6 October price, the deal is valued at around $321 million

About $80 million of Blackhawk debt will be repaid at closing with proceeds from the transaction.

Blackhawk Specialty Tools is a provider of well construction and well intervention services and products to the oil and gas industry.

Founded in 2008 and based in Houston, Blackhawk operates in the US and Mexican Gulf of Mexico, onshore US and other overseas locations.

Blackhawk's specialty products helps oil and gas companies save valuable rig time, operate safely, reduce derrick trips and enhance cementing operations.

Frank's expects that Blackhawk's specialty cementation tools will augment its tubular running services business and allow it to diversify its offerings and emerge as a leader in a new business line.

Gary Luquette, Frank's president and CEO, 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.''

''Combining Frank's and Blackhawk is the right strategic move at the right time, providing customers the same exceptional service with a broader platform to accelerate future growth,'' said, Billy Brown, Blackhawk's founder and CEO.