Ameron International Soaring On Merger With National Oilwell Varco

Shares of Ameron International Corporation AMN are surging this morning, gaining more than 27% after the company agreed to a merger with National Oilwell Varco NOV for $85 per share in cash. James S. Marlen, Chairman, President and Chief Executive Officer of Ameron International Corporation, commented, “Ameron's Board of Directors believes that the proposed transaction with NOV represents an outstanding value for Ameron's stockholders. The Ameron businesses, while confronting a challenging business environment at this time, hold strong positions, and we have structured the businesses to capitalize on growth opportunities as markets recover. NOV has the resources to fully capitalize on the established business strategies and fully realize the potential of each of the Ameron businesses.” Pete Miller, Chairman, President and CEO of NOV, remarked, “The acquisition of this leading fiberglass pipe provider will enhance the scale and scope of the solutions we offer to our oil and gas customers worldwide. Ameron's marine and offshore products will expand NOV's offering into seawater handling systems in new oil and gas drilling and FPSO vessels, and our combined oilfield composite pipe operations will benefit from purchasing efficiencies and scale. This combination will position NOV well to help our clients solve various production challenges. The Water Transmission Group and the Infrastructure Products Group also allow NOV to capitalize on leading positions in these industries.” At last check, shares of Ameron were trading at $84.62‎, a gain of $18.35‎ or 27.69%‎ in pre-market.