By Lisa Kerner
Charlotte, N.C., June 3 - W-H Energy Services, Inc. agreed to be acquired by Smith International, Inc. in a cash and stock deal valued at approximately $3.2 billion, or some $93.55 per share, it was announced on Tuesday.
Under the companies' definitive merger agreement, W-H Energy shareholders will receive $56.10 per share and 0.48 Smith common shares for each W-H Energy share they hold.
Smith is expected to issue some 15.5 million new shares to W-H Energy equity holders.
The strategic combination will provide Smith with entry into directional drilling services, one of the oilfield service industry's fastest-growing markets, a W-H Energy news release said.
Following the merger's close, expected in the third quarter of 2008, Smith stockholders will own 93% of the combined company, with W-H Energy shareholders owning the remaining 7%.
J.P. Morgan Securities, Inc. provided a fairness opinion to Smith, while UBS Investment Bank advised W-H Energy.
W-H Energy is a diversified oilfield service company located in Houston.
Smith, also based in Houston, supplies products and services to the oil and gas exploration and production industry.
| Acquirer: | Smith International, Inc.
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| Target: | W-H Energy Services, Inc.
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| Announcement date: | June 3
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| Transaction total: | $3.2 billion
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| Price per share: | $56.10 cash and 0.48 Smith shares
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| Expected closing: | Third quarter of 2008
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| Stock price for acquirer: | NYSE: SII: $78.02 on June 2
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| Stock price of target: | NYSE: WHQ: $85.54 on June 2
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