Houston-based Hercules Offshore will acquire TODCO in a stock and cash transaction valued at approximately US $2.3 billion. Hercules expects the transaction will create the world’s fourth largest jack-up fleet, establishing the firm as a major player in the Gulf of Mexico.
The combined company will operate a fleet of 33 jack-up rigs, 27 barge rigs, 64 lifeboats, three submersible rigs, nine land rigs and one platform rig, operating in ten countries on five continents.
“We intend to leverage…Hercules Offshore and TODCO to create long-term value for our companies’ shareholders, customers and over 3900 employees,” said Randy Stilley, CEO, president and director of Hercules Offshore. “Hercules Offshore will continue to focus on seeking strategic growth opportunities and expanding our geographic diversity.”
The board of directors of Hercules and TODCO unanimously approved the transaction, the closing of which is subject to approvals and other customary conditions, to be undertaken shortly.
Jan Rask, president and CEO of TODCO said, “shareholders have an opportunity to realise cash while continuing to participate in a robust offshore drilling market through an entity with a balanced capitalisation.”
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