Schlumberger sell Reed-Hycalog

Schlumberger has agreed to sell its Reed-Hycalog business to Grant Prideco, Inc for a cash and stock deal worth around $350 million. In the twelve months ended June 30, 2002, Reed-Hycalog had revenues of $228 million and earnings before interest, taxes and depreciation of $53 million.

Michael McShane, Grant Prideco's President and Chief Executive Officer commented, "Reed-Hycalog provides an excellent strategic and industrial fit with Grant Prideco's worldwide leadership position in drill stem technology and manufacturing. They are an established market leader with strong brands and demonstrated profitability throughout the drilling cycle.

"Reed-Hycalog brings to Grant Prideco a portfolio of high-quality, technologically advanced products, and a highly-experienced manufacturing and sales workforce with worldwide presence. Long term, we expect to grow Reed-Hycalog's business and to realize synergies in technology, manufacturing and sales."

The transaction is expected to be completed prior to year-end and is subject to regulatory approvals, including under the Hart-Scott-Rodino Improvements Act, and other customary closing conditions.