Allis-Chalmers Energy Inc., the Houston-based oilfield services company that provides services and equipment to oil and natural gas exploration and production companies, last week reached a definitive agreement to purchase the assets of Oil & Gas Rental Services, with facilities in Morgan City, La., and Victoria, Texas, for $291 million in cash and 3.2 million shares of Allis-Chalmers common stock. The transaction is expected to close before the end of 2006.
The previous week, Allis-Chalmers reached an agreement to acquire Broussard, La.-based Petro Rentals, and earlier this year, the company acquired Specialty Rental and Rogers Oil Tool Services, both based in Lafayette, La.
Established about 40 years ago, Oil & Gas Rental Services has an extensive inventory of rental equipment, including drill pipe, tubing work strings, blow-out preventers, choke manifolds and various valves and handling tools for oil and natural gas drilling. Oil & Gas Rental Services provides equipment worldwide, including Malaysia, Colombia, Russia, Mexico and Canada. Oil & Gas generated aggregate revenues of $54.1 during the 10 months ended Aug. 31, with income before taxes of $34.8 million and EBITDA of $40.2 million.