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NOV's Wilson price tag rises by $100 mln -Schlumberger
July 25, 2012 / 6:20 PM / in 5 years

NOV's Wilson price tag rises by $100 mln -Schlumberger

July 25 (Reuters) - The deal for Schlumberger’s Wilson distribution arm ended up costing National Oilwell Varco Inc $100 million more than the approximately $800 million estimated by Schlumberger three months ago.

Wilson, which generated $2.1 billion in 2011 revenue by shipping pipes, fittings and other equipment for oil and gas companies, was sold for $906 million in cash, Schlumberger said in a quarterly filing on Wednesday. Schlumberger booked a pretax gain of $137 million, or $16 million after tax, as a result.

A Schlumberger spokeswoman was not immediately available for comment.

Wilson had been acquired by Schlumberger through its $11.3 billion buyout of Smith International in 2010.

Also in the second quarter, NOV bought oilfield production equipment distributor CE Franklin, in which Schlumberger held a 56 percent stake. That netted the world’s largest oilfield services company $122 million in cash.

It has been a busy year for Schlumberger in terms of striking corporate deals. Earlier this month, it bought a 20.1 percent stake in Anton Oilfield Services Group, a Chinese firm listed in Hong Kong.

Reporting by Braden Reddall in San Francisco; editing by Matthew Lewis

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