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Friday, October 13, 2006
PRESS RELEASE–HOUSTON, Oct. 13 — Grant Prideco, Inc. (NYSE: GRP – News) today announced that it has acquired Anderson Group Limited and related companies ("Andergauge"). Andergauge is a provider of specialized downhole drilling tools, including the well known AnderReamer and AG-itator, and provides services related to these tools. The company is headquartered in Aberdeen, Scotland and employs approximately 200 people worldwide. This business will be included in the Company’s ReedHycalog® drill bit segment. ReedHycalog is a global leader in drill bit technology, manufacturing, sales and service and a provider of technological solutions to the worldwide petroleum drilling markets.
The purchase price was $115.7 million plus the assumption of net debt of approximately $39.9 million. Estimated full-year revenue for 2006 is approximately $70 million and estimated full-year EBITDA is approximately $26 million.
CEO Michael McShane commented, "We are excited about adding the fast- growing suite of Andergauge downhole tools to our existing product lines. Andergauge brings a strong international presence, with approximately 70% of its business outside the United States. With the introduction of several new downhole products, Andergauge has expanded its range of tools to meet demanding drilling requirements. Additionally, by incorporating ReedHycalog’s PDC and bit technology into Andergauge’s product development, we believe significant opportunities exist for product line and technology enhancement."
Grant Prideco (http://www.grantprideco.com ), headquartered in Houston, Texas, is the world leader in drill stem technology development and drill pipe manufacturing, sales and service; a global leader in drill bit technology, manufacturing, sales and service; and a leading provider of high-performance engineered connections and premium tubular products and services.
This press release contains, and statements made during our conference call relating to this press release may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning, among other things, Grant Prideco’s prospects for its operations and future demand for its products and services, all of which are subject to certain risks, uncertainties and assumptions. These risks, uncertainties and assumptions, which are more fully described in Grant Prideco, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, include the impact of changes in oil and natural gas prices and worldwide and domestic economic conditions on drilling activity and demand for and pricing of Grant Prideco’s products, expectations for modestly improving demand for our drill stem products, increased competition in the Company’s premium connection markets, expectations relating to Grant Prideco’s ability to maintain and increase pricing in its various product lines, expectations that we will be able to pass through raw material price increases to our customers, foreign currency issues and unexpected changes in exchange rates, impact of geo-political and other events affecting international markets and trade, Grant Prideco’s ability to remain on the leading edge of technology in its products and successfully introduce and integrate new products and processes, the impact of international and domestic trade laws, unforeseen or unexpected litigation or claims, manufacturing difficulties and disruptions, and Grant Prideco’s assumptions relating thereto. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material respects from those currently anticipated and reflected in Grant Prideco’s forward-looking statements.
Source: Grant Prideco, Inc.
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