Now Reveals Acquisition Of Power Service For Undisclosed Terms

NOW Inc. DNOW revealed it struck a deal to acquire Power Service, Inc., Industrial Tool & Repair, Inc., d/b/a/ Power Service of Montana and Power Transportation LLC. The company indicated that it was all-cash transaction though terms were not disclosed.

Now said the deal remained subject to customary closing conditions. That included regulatory approval.

President and CEO Robert Workman commented, "We are excited about the opportunity to add Power Service's business to DistributionNOW. With their established position in the Oil & Gas turnkey tank battery solutions market, Power Service would provide a number of attractive synergies for DNOW. Similar to our previous large acquisitions since going public, Power Service would provide us with a unique, high value add solution for our existing customer base."

He continued, "Additionally, this acquisition would broaden DNOW's global valve actuation offering by applying Power Service's core competencies around spooling and valve modification, solving our customer's needs for this service, in addition to a turnkey tank battery (facilities) solution."

Workman concluded, "And, it would also give us the opportunity to leverage the infrastructure of Odessa Pumps, an acquisition we made last year, to continue to organically grow our customer participation by expanding product lines across several regions. Simultaneously, Power Service would benefit from our scale, international presence and PVF supplier relationships required in their modularized packages."

Power Service offers rotating and process equipment engineering, design, and installation, fabrication and service solutions. The company employs approximately 400 employees.

On Thursday, the stock shed 3.71 percent.