Nabors Industries is a land drilling flight firm and also a provider of directional drilling services, performance tools and offshore platform rigs with its head offices in Houston is set to acquire Tesco Corp, a manufacturer of technology based solutions for the energy industry also based at Huston. The acquisition which is set to happen in the last quarter of this year is an all stock acquisition. Tesco common stock being valued at four point six two dollars for every share in line with Nabors shares closing price on 11th August. This value is a nineteen percent premium based on the closing value of Tesco shares and a thirty percent premium in line with the value of Tesco enterprise according to the firm cash balance prepared in thirtieth June.
At the end of the deal, the shareholding of the Tesco firm will be 10% of the total shares of Nabors. However, if by the end of February next year the deal will not have gone through then according to a court filing done with the US Securities Exchange Commission; Tesco will have to pay eight million dollars to Nabors.
Tesco is said to compliment Nabors equipment subsidiary firm Canrig and the firm’s tubular services operations will be a benefit to Nabors drilling operations. The synergies from the two firms expected to generate twenty million dollars in revenue in the first year. This is expected to increase to thirty million dollars to thirty-five million dollars in the subsequent years. According to Nabors president, CEO and Chairman Anthony Petrello, the acquisition will help the company deliver better rig services.
This Man Anthony Petrello
Anthony Petrello serves as Nabors President, chairman, and CEO and in 2014 was ranked as one of the top paid U.S CEOs. At the time he was earning sixty-eight point two million dollars, despite his successes Anthony is a humble and honest man who deserves what he earns if not much more. Petrello was born in Newark to working class parents who did not have much. From an early age, he exhibited a mathematical intelligence that was not common among his peers and fortunately this did not escape Yale University which gave him a scholarship after his high school graduation to pursue mathematics. However, at some point in his stay at Yale Petrello changed his mind and joined the Harvard School of law. He worked hard in his school years and after his graduate studies worked for various companies joining Nabors.
He joined Nabors board of directors in 1991 after joining the company from Baker & McKenzie law firm where his specialty was corporate taxes. He has climbed the ranks for the twenty-six years he has worked for the company to become the firm CEO. During his tenure, he has emerged as one of the most capable business leaders in the US and has done much for Nabors. Petrello is also known as a philanthropist as he and his wife donate millions of dollars every year to charities