Houston-based oil equipment company Frank’s International is acquiring a smaller oil tool-rental company Timco for $95 million. The transaction is believed, by oil industry observers, to be a part of a move towards consolidation in the oil industry as a result of low oil prices.
Frank’s is a global oil-services company that provides a broad and comprehensive range of highly engineered tubular services to leading exploration and production companies in both offshore and onshore environments. Timco provides tubular running services and rental equipment onshore in the southern U.S. and offshore in the Gulf of Mexico.
Frank’s intends to finance the acquisition using cash on hand. The acquisition is scheduled to close in the second quarter of 2015, subject to customary approvals.
Timco, based in Lafayette, La., is involved in the Eagle Ford, Permian Basin and Haynesville shale plays.