Calgary-based Logan International Inc., a manufacturer of down-hole fishing and intervention tools for the oil and gas industry, has completed its acquisition of the Sup-R-Jar drilling equipment business of Smith International Inc. The entire purchase, which was funded by the company’s revolving credit facility, totaled US$17.2 million. Logan is a portfolio company of U.S. private equity firm Cadent Energy Partners.
Logan International Inc. Closes the Purchase of Sup-R-Jar Line
CALGARY, ALBERTA — (Marketwired) — 04/18/13 — Logan International Inc. (TSX: LII) (“Logan” or the “Company”) announced that it completed the purchase of the Sup-R-Jar product line. In addition to a cash payment at closing of approximately USD$15.6 million, the Company is obligated to pay an additional USD$1.6 million upon the delivery of certain inventory by the seller. The purchase was funded under Logan’s revolving credit facility.
Gerald Hage, Logan’s Chief Executive Officer, stated, “We are excited to add the Sup-R-Jar to our product offering. This tool will be rented alongside our Xciter tool to drilling contractors and operators in North America and sold internationally by our Logan Oil Tools international sales team. We also gain a full service facility in Oklahoma City to redress the Super-R-Jar and Xciter tools to midcontinent customers.”
Logan manufactures and sells a comprehensive line of fishing and intervention tools, including retrieving, surface, stroking and remedial tools for a variety of well workover, intervention, drilling, and completion activities (LOT); manufactures and sells high-performance poly- crystalline diamond compact (PDC) cutters and bearings (Dennis Tool Company); manufactures and sells packers, bridge plugs, and other completion products (Kline Oilfield Equipment, Inc.); provides proprietary multi-zonal completion technology and conventional completion production products and services (Logan Completion Systems Inc.); provides proprietary and patented products and services that are focused on production optimization in sand-laden heavy oil wells (Scope Production Development); and provides proprietary tools that are used to improve the effectiveness and reliability of horizontal drilling (Xtend Energy Services). Common shares of Logan are traded on the Toronto Stock Exchange (TSX) under the ticker symbol “LII”.
This press release contains forward-looking statements, including, without limitation, statements relating to the anticipated benefits of the transaction. These statements relate to future events or future performance of Logan International. When used in this press release, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “propose”, “expect”, “potential”, “continue”, and similar expressions, are intended to identify forward- looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect Logan International’s current views with respect to certain events and are subject to certain risks, uncertainties and assumptions. Although Logan International believes that the expectations and assumptions on which the forward- looking statements are based are reasonable, undue reliance should not be placed on the forward- looking statements because we can give no assurance that they will prove to be correct. Many factors could cause Logan International’s actual results, performance, or achievements to materially differ from those described in this press release. Readers are referred to Logan International’s Annual Information Form filed on www.sedar.com which identifies significant risk factors which could cause actual results to differ from those contained in the forward- looking statements. Should one or more risks or uncertainties materialize or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. Logan International does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein in any jurisdiction.
Logan International Inc.
Chief Executive Officer
403-930-6810 Calgary or 832-386-2575 Houston
Logan International Inc.
Chief Financial Officer
403-930-6810 Calgary or 832-386-2534 Houston
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