Lufkin Industries Announces Acquisition of Quinn's Oilfield Supply and Affiliates for $303M

Lufkin Industries, Inc. LUFK announced earlier today that it has signed an Asset Purchase Agreement to acquire substantially all of the assets of Quinn's Oilfield Supply Ltd., including certain affiliates, for approximately $303 million in cash subject to certain adjustments. Quinn's, based in Red Deer, Alberta, Canada, is one of the largest reciprocating rod pump manufacturers in North America and, through its acquisition of GrenCo Industries in June 2010, also manufactures and distributes progressive cavity pumps and related equipment. Founded in 1965, Quinn's operations include two manufacturing facilities in Canada, one in the United States and 51 service locations strategically located in the oil and gas producing areas of North America. The acquisition is expected to be accretive to Lufkin's earnings in 2012 and is expected to close before the end of 2011, subject to certain closing conditions and regulatory approvals. Financing for this transaction is anticipated to include a combination of borrowings under an expanded revolving credit facility and a senior secured term loan.