National Oilwell Varco agreed on Thursday to buy Robbins & Myers, a maker of oil well drilling equipment, for about $2.5 billion, as deal-making in the energy sector continues unabated.
Under the terms of the deal, National Oilwell will pay $60 a share in cash, a 28 percent premium to Robbins & Myers' closing price on Wednesday.
It is the latest deal in the oil patch, as a slew of companies seek to take advantage of a boom in drilling for oil and natural gas, especially in hardened rock formations untapped by previous generations.
National Oilwell has been among the more active buyers. Since 2010, the company has made 13 deals, according to data from Standard & Poor's Capital IQ.
Based in Dayton, Ohio, Robbins & Myers specializes in making critical industrial parts like valve controls and grinders.
“Robbins & Myers has many complementary products with those National Oilwell Varco currently offers the industry,†Pete Miller, National Oilwel l's chairman and chief executive, said in a statement. “We feel that our combined manufacturing infrastructure and portfolios of technology will further advance our presence in the oil and gas markets we serve.â€
Robbins & Myers' biggest shareholder, M.H.M. & Company, which owns a 10 percent stake, has agreed to the deal. About two-thirds of the company's shareholders must also sign on. The deal is expected to close in the fourth quarter.
National Oilwell was counseled by the law firm Fulbright & Jaworski, while Robbins & Myers was advised by Citigroup and the law firm Thompson Hine.
