RPC, Inc., announced the acquisition, effective July 1, of Spinnaker Oilwell Services, LLC, a provider of oilfield cementing services in the Permian and Mid-Continent basins. Spinnaker, headquartered in Oklahoma City, Okla., operates facilities located in El Reno, Okla., and Hobbs, N.M., and maintains 18 full-service cementing spreads.
The purchase price was $79.5 million in exchange for 100 percent of Spinnaker’s equity. The transaction consideration consisted of approximately $77.0 million of cash, and the $2.0 million payoff and $0.5 million assumption of capital lease liabilities. The agreement contains a post-closing adjustment window for an agreed-upon level of Spinnaker’s working capital, as well as other usual and customary items.
“The acquisition of Spinnaker will significantly expand RPC’s cementing business from its presence in South Texas to basins in which we currently provide other services,” stated Ben M. Palmer, RPC’s President and Chief Executive Officer. “We are excited to add Spinnaker as it represents a valuable strategic opportunity for our company. We are impressed with Spinnaker’s management team, talented workforce, and the quality of its operations, and plan to continue operating under the Spinnaker name.”