Frank's International To Acquire Blackhawk Group Holdings In $321 Mln Deal

(RTTNews) - Oil services company Frank's International N.V. (FI) said it has agreed to acquire Blackhawk Group Holdings, Inc., the ultimate parent company of Blackhawk Specialty Tools LLC. Based on the Frank's closing price on Thursday, October 6, 2016, the transaction is valued at approximately $321 million.

Blackhawk Specialty Tools is a provider of well construction and well intervention services and products. Blackhawk is being purchased from Bain Capital Private Equity, a private investment firm which acquired the business together with management in 2013.

The merger consideration comprises a combination of about $150 million of cash on hand and about 12.8 million shares of Frank's common stock, on a cash-free, debt-free basis. About $80 million of Blackhawk debt is being repaid at closing with proceeds from the transaction. Closing of the transaction is expected to occur during the fourth quarter of 2016.

Frank's expects that Blackhawk's specialty cementation tools will augment its tubular running services business by providing Frank's the opportunity to diversify its offerings and emerge as a leader in a new business line and a significantly larger addressable market.