Smith International has agreed to be taken over by its much larger rival, oilfield services giant Schlumberger Ltd. for $11.34 billion stock-for-stock transaction. (Read the news story.)
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Smith International is the parent of Wilson, one of the country’s largest distributors of pipe, valve and valve automation, fittings, mill and tool supplies, and safety products to the energy and industrial marketplaces. It also is known for providing integrated supply chain management solutions for customers in a variety of industries.
Wilson had $1.8 billion in sales last year. It has more than 250 locations across the U.S. and Canada and last month opened four new locations in Texas and Oklahoma. And it could be headed for further expansion under the new company, according to Andrew Gould, chief executive officer for Schlumberger.
In a telephone conference discussing the deal, Gould says he sees growth for Wilson .
“We see a real opportunity in the Smith distribution business,” Gould said on the call, according to Bloomberg News. “We believe that in a combined company, Wilson could realize its full potential through global expansion opportunities that we can provide while improving our own internal supply chain services.”
This is the largest such deal announced this year, according to Bloomberg.
Jack Keough is a contributing editor to Modern Distribution Management and the owner of Keough Business Communications. He can be reached at jack@mdm.com or by phone at 508-734-0029. Keough is the former editor of Industrial Distribution Magazine.