(Update share prices in third paragraph.)
July 5 (Bloomberg) -- National Oilwell Varco Inc., the world’s largest provider of oilfield equipment, agreed to buy Ameron International Corp. for about $772 million in cash, gaining access to its pipeline-production unit.
Holders of Ameron will receive $85 for each share, Houston- based National Oilwell said today in a statement. The companies’ boards have approved the transaction, which may close as soon as the fourth quarter. The price is a 28 percent premium to Ameron’s closing price on July 1.
Ameron, based in Pasadena, California, surged $18.81, or 28 percent, to $85.08 at 4:15 p.m. in New York Stock Exchange composite trading, the largest gain in 31 years. National Oilwell rose $1.74, or 2.2 percent, to $80.05.
“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,” National Oilwell Chairman and Chief Executive Officer Pete Miller said in the statement.
Ameron makes fiberglass-composite pipe for moving oil, chemicals and fluids, according to the statement. The company also provides poles and construction materials, as well as fabricated steel products.
The deal will add to National Oilwell’s earnings next year, the company said.
--Editors: Tina Davis, Jessica Resnick-Ault
To contact the reporter on this story: Edward Klump in Houston at firstname.lastname@example.org.
To contact the editor responsible for this story: Tina Davis at email@example.com.