Lufkin Industries to Acquire Zenith Oilfield Technology for 80.7M Pounds

Lufkin Industries, Inc. LUFK announced today that its subsidiary, Lufkin Industries Holdings UK Limited, has agreed to acquire Zenith Oilfield Technology Ltd. Zenith, based in Aberdeen, Scotland, is an international provider of innovative technology and products for the monitoring and analysis of down-hole data and related completion products for the oilfield artificial lift market. Zenith was founded in 2004 and serves a diversified customer base, including independent and national oil companies in approximately 30 countries. The acquisition is expected to close by February 29, 2012. The purchase price is approximately 80.7 million pounds Sterling (US$126.6 million) net of acquired cash. As a result, Lufkin expects this acquisition to be accretive to its earnings in 2013. The acquisition will be initially funded from the unfunded portion of Lufkin's existing bank facilities, which is being increased by approximately US$25 million, to be provided by Barclays Capital and J.P. Morgan.