Ensco Buys Rowen
Offshore Drilling Company Ensco annouced today that it would buy Rowen a smaller, but significant, rival
Date 8 October 2018
Offshore Drilling Contractors Ensco plc (NYSE: ESV) and Rowan Companies plc (NYSE: RDC) jointly announced today that the companies have entered into a definitive transaction agreement under which Rowan will combine with Ensco in an all-stock transaction. The deal is said to be worth $2.38 billion.
The definitive transaction agreement was unanimously approved by each company’s board of directors. The Saudi Aramco partner to the ARO Drilling joint venture has consented to the combination between Rowan and Ensco. As well as benefitting from the joint-venture which Rowen has with Saudi Aramco the transaction would give Ensco an foot hold in the harsh environment market which includes Norway.
Rowan President and Chief Executive Officer Tom Burke, will serve as President and Chief Executive Officer of the combined company.
Under the terms of the transaction agreement, Rowan shareholders will receive 2.215 Ensco shares for each Rowan share. Upon closing, Ensco and Rowan shareholders will own approximately 60.5% and 39.5%, respectively, of the outstanding shares of the combined entity. There are no financing conditions for this transaction.
Source Ensco plc
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