Oct. 6 (Bloomberg) — Robbins & Myers Inc., the industrial- equipment maker with operations in 15 countries, agreed to buy T-3 Energy Services Inc. for about $422 million to boost sales to oil companies.
Owners of Houston-based T-3 will receive 0.894 share of Robbins & Myers and $7.95 in cash for each of their shares, the companies said today in a statement. The deal values T-3 at about $31.80 a share, 17 percent higher than its closing price yesterday, according to a calculation by Bloomberg.
Excluding one-time transaction costs, the purchase will start increasing earnings for Dayton, Ohio-based Robbins & Myers in the company’s first full year of owning T-3, according to the statement. The companies said combining operations will yield about $9 million in annual cost savings.
I have to admit, that was a fun bit of news to come in to work to yesterday. On the other hand, I’m not really worried per se. According to the press releases, there’s going to be very little overlap between the two companies, so layoffs are not guaranteed. In addition, they’d likely need the IT people to help in the integration. I’m fine for the foreseeable future, especially as the sale hasn’t even closed yet and won’t for a few months at the very least.
I suppose we’ll see what happens.