CALGARY - Logan International Inc. (TSX:LII) has agreed to pay $17.2 million in cash to buy the Sup-R-Jar drilling equipment business from Smith International Inc., a move that company hopes will give it more access to international projects.
Logan said it will acquire rights to use the Sup-R-Jar trade name as well as other assets that will complement Logan's own line of products and services for drilling contractors and operators.
"We believe this acquisition fits very well with our strategy of becoming a leading provider of downhole tools," Logan chief executive Gerald Hage said.
"The North American Sup-R-Jar rental tool and our proprietary Xciter tool are both used by drilling contractors and operators, which Logan believes both improve drilling efficiency especially in horizontal wells."
Logan will acquire the majority of Smith's North American Sup-R-Jar rental and services assets, as well as raw materials and parts inventories, use of the Sup-R-Jar trade name and manufacturing specifications.
Hage said that the acquisition will allow Logan Oil Tool to bid on more international work that it couldn't handle previously.
"Access to the manufacturing specifications and to a well-known drilling jar now allows us to bid on more international work," Hage said.
The deal is expected to close later this month.