Halliburton to sell Mono pumping
20 Jan 2003
Halliburton is to sell its Mono pumping business to National Oilwell through the sale of all outstanding stock of Monoflo in the US and the Mono Group in the UK.
Mono is a manufacturer of power sections for downhole drilling motors, downhole artificial lift pumps, progressing cavity fluid transfer pumps, grinders and screens and services the oilfield, industrial and agricultural markets. The sale of the Mono pumping business is part of Halliburton's previously announced plan to divest non-strategic assets.
National Oilwell will issue 3.2 million shares of its Common Stock and pay $22.65 million in cash for the business, for a total consideration of approximately $87 million based on the January 15, 2003 closing price of the stock.
In 2002, the Mono business generated revenues of approximately $80 million. National Oilwell expects to contribute significant additional volume to the Mono business, and believes the acquisition will add approximately $18 million in operating profit and be accretive by more than $0.05 per share to 2003 earnings.
